Sorry I havent been able to upload any examples yet. I use Microsoft Paint only to shrink the photos as there is no option for changing compression. The only real way to resize the image is to shrink it to certain % of original size which I usually go for about 20 percent. When I use photoshop to resize the photo I usually take it down to 1024 by whatever the linked aspect ration pixel size would be. I then save the photos at high quality which would be minimal compression. I get the artifacting only in Photoshop even though the images are pretty close to the same pixel size.
This first picture was resized using Microsoft Print at 20% which brought the pixel size to approx 934x621. The file size is about 158kb
This photo was shrunk using Photoshop CS4 Extended to 20% which it says was 935x621. File size was 151kb.
Both resized from an original Jpeg.