I don't use PSP 8, but the techniques are going to be similiar, no matter what you use to do it.
There are two ways you can decrease an images file size. One is to reduce the image size in resolution. This is usually the preferred method (since you'll want a smaller image for onscreen viewing anyway).
The other way is to increase the JPEG Compression Amount (decrease JPEG Quality). Most image editing packages have a slide bar for JPEG Quality, when you use the "Save As" option after modifying an image.
Personally, I'd just use Irfanview (downloadable free from
http://www.irfanview.com ). It will let you quickly resize an image under the "Image, Resize/Resample" menu. I use the available Lanczos Algorithm for both upsizing and downsizing images.
For on screen viewing, I'd probably go to approximately 800x600 resolution -- keeping JPEG Quality as high as possible (tweaking it as needed to keep the file sizes down below 150kb).
Now, this is "hit and miss", too. However, because file sizes vary with JPEG Images (based on the amount of detail in an image), what works for one image, may not work for another.
Sure, you COULD always downsize to the same smaller size at around 800x600, then set JPEG Quality to a low value (ensuring that the images would ALWAYS be under 150kb when saved). However, you don't want to decrease quality too much -- especially if you are trying to "show off" your images.