This is a free magento extension/module to resize category images. Join the converstation at: How to resize Magento e-Commerce category images
/*
* You can pass width and height and much more, see helper for details.
* echo $this->helper('timage')->init($_category->getImageUrl())->resize(null, 120)
* echo $this->helper('timage')->init($_category->getImageUrl())->resize(120, null)
* echo $this->helper('timage')->init($_category->getImageUrl())->resize(120, 120)
*/
<div class="product-image">
<a href="<?php echo $_category->getURL() ?>" title="<?php echo $this->htmlEscape($_category->getName()) ?>">
<img src="<?php echo $this->helper('timage')->init($_category->getImageUrl())->resize(null, 120) ?>" alt="<?php echo $this->htmlEscape($_category->getName()) ?>"/>
</a>
</div>
You can init image helper with path to image, then you must pass width and height to crop image. After image is cropped its saved and ready to be resized using cropped image as source image to be resized. See example code below.
<img src="<?php
echo $this->helper('timage')
->init($_category->getImageUrl())
->setWidth(230)
->setHeight(200)
->crop()
->resize()
?>" alt="alt text"/>
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