Looking at the code for your template, I believe the maximum width that you can have your photos without them being cropped like that is 410 pixels wide.
With mine, I tend to go with 350 pixels wide just to make sure that they aren't cropped but that is mainly because with MacJournal, I can link my gallery photos which are already saved at 700 pixels and tell it to post at 50% size (350pixels).
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