Double-click on the images in BD. This will open the picture editing window. Alter the width and height to 80%. 70% or whatever looks good. You'll have to experiment. Also set the alignment to 'middle' or absolute middle' if you want a caption underneath.
When you are ready to make the sony reader book then click the relevant button and check the picture size settings (On the top right-hand tab, I think). You need to make sure that you set the size as is, not maximum.
As for the caption size, try setting them as paragraphs rather then subtitles. Or else set subtitles to a smaller font after clicking on the the 'make sony reader' button.
I hope this helps.
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