Having the same issue with WP 3.6 and LBP 2.6. You can see the problem at:
http://www.mobilechad.com/
Click on any of the images in the primary post on the site (except the featured one). The images are 4000×3000, I’ve got the settings set to 90% for max width and height and the resize box checked, but it doesn’t resize the images down. It just shows the upper left corner of the photos.
