Go to Layer > Flatten Image. If prompted to discard hidden layers, click OK
In PS go to Image > Image Size (in PSE, go to Image > Resize > Image Size) and change your resolution to 72 dpi. Change your pixel dimensions to 500x500. (Make sure "Resample Image" is on.) Click OK.
Go to Save > Save for Web. You will get a new dialog box where you can adjust the Quality value until you see an acceptable file size in the bottom left corner.
Adjust the Quality value and click OK. You will be prompted to name your compressed file and save it to a location on your hard drive.
Digital Scrapbooking Kits
Vintage Images
