I have an app that lets the user take a picture with his/her iPhone and use it as a background image for the app. I use UIImagePickerController to let the user
You can create a graphics context, draw the image into that at the desired scale, and use the returned image. For example:
UIGraphicsBeginImageContext(CGSizeMake(480,320));
CGContextRef context = UIGraphicsGetCurrentContext();
[image drawInRect: CGRectMake(0, 0, 480, 320)];
UIImage *smallImage = UIGraphicsGetImageFromCurrentImageContext();
UIGraphicsEndImageContext();