In addition to the dimensions (max 650 pixels) there is also the issue of the actual size of the picture file in bytes - maximum 150k bytes per image. I suspect that is the issue now.
You need to save the file as a JPEG file (.jpg) format. Having done that, if the file is still over 150kB, you need to increase the compression level. JPEG files are compressed and the amount of compression is adjustable. The higher the compression, the smaller the file and the lower the quality.
Exactly how you increase the compression depends on the software you are using. Microsoft Photo Editor for example allows you to change the compression, they call it "jpeg quality factor", when you save an image by clicking on the [More] button on the Save File dialog box. MS Paint however does not have the ability to change the compression at all.
Hope that makes sense.... Bob.