You can't resize an image without losing some quality, simply because you are reducing the number of pixels.
Don't reduce the size client side, because browsers don't do a good job of resizing images.
What you can do is programatically change the size before you render it, or as a user uploads it.
Here is an article that explains one way to do this in c#: http://www.codeproject.com/KB/GDI-plus/imageresize.aspx