You can upload any web-compatible media type including all image file-types, video, HTML5 and Flash. It will automatically be re-sized, retaining the image aspect ratio and ensuring your images are always crisp and clear.
If you want to create media the exact size of the media place-holder in a specific template, simply move your mouse over the “media location” placeholder in the course authoring screen and a tag will appear displaying the image size in pixels. In the screen shot below, the media location is displayed as being 448 pixels wide by 336 pixels high.