I'm sorry, maybe I'm not explaining correctly....
I CAN'T set the height & width because all my images are different sizes. I tried everything you said, and yes, I set the values in admin, but some of them came out stretched because like I said, they were different sizes. Yes, they stretched even with the automatic thumbnail function. There was no automatic scaling like you mentioned. Now, even after I removed the thumbnail option, they still stretch. Before I installed the basic design pack, the images would resize nicely when I left one of the sizes (height or width) blank, but now it doesn't work. Please answer as soon as you can because I'm considering restarting from scratch. Let me know if you're confused or have no idea how to fix it, and I'll just start over.
Thanks!