Currently, FotoAlbum does not provide the ability to directly crop or scale a picture. You can control the cropping region while printing, but there is no way to permanently crop a picture.
You can use the Tools feature of FotoAlbum to use other picture editing software to perform these operations and other more sophisticated editing (such as red-eye removal). By using the tools feature, you can right-click on a picture and quickly edit the picture using the editor of your choice.
FotoAlbum will automatically detect any change made by a third-party tool and will regenerate the thumbnail and sync the updated picture to the website (the next time you sync).
To setup the tools you use, refer to the section about the Tools Preferences.