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I use Photoshop 7 and having trouble with copying pictures to use in a document.
I copy a picture from the Internet, usually a small gif file, then I edit it in Photoshop. Then I use the image in a MS Word document, in this case I put it in a calendar.
The trouble I'm having is that the image I first copy is such a small file size and has such a small dpi or resolution that it looks so jagged edged at the end result. I don't even increase the image size and it still looks horrible.
Does anyone have a suggestion on how I can fix this?
I don't care what file size the image ends up to be because it is only used in a personal document, not a webpage.
Thanks for reading.

Better increase the image size in Photoshop. MS Word may not do such a good job. Anyway, the best solution is to use larger images from the start.

Forget MS Word. The image is edited with Photoshop.
Often times if the image is copied from the web, I don't have a choice on what size the picture is. So my question is if I copy a little picture from the web, How can I smooth the jagged edges?

Try Anisotropic option of the Stylize > Diffuse filter in Photoshop or Redfield Perfectum from http://www.redfieldplugins.com/filterPerfectum.htm

I followed the link and it looks like exactly what will do the job! I have not tried the diffuse yet, but plan on trying that next. Thank you very much.
You have ended a couple of weeks of frustration for me.

go to the free plug ins section of Plug In Site, and scroll down to the Xero set. There is a filter in that set that is called Super Smooth, and should do roughly the same job for free.

Thank you very much, aspect_ratio.
I am definitely going to get this!