reducing file size & retain sharpness

Hello I am using photoshop 7, I am trying to reduce jpg images around 1 mb sized at about 2400 x 1800. I am trying to reduce the image down to about 5 centimeters and retain the sharpness.
I have found that my images are blurring a fair bit can anyone please help.

When you're reducing such a large file to something smaller, it's always going to lose it's sharpness (and will usualy blur). You can use filters to try to counter that effect though.
I use anything in the filter>sharpen area.
I also find adjusting the contrast can help in certain situations too.

hmm.. an img of that size should keep alot of quality as LONG as you keep the original image RATIO!!!! if you change he image ratio then it will **** up so if you want a different img ratio like (800x600, 1024x768,1152,864...) just crop it.

Thank you both Zyconium and Yacovitch for your advice.
Do you think I might be better taking my original digital image at a lower resolution of 640, rather than 2400 to try and retain sharpness when educing the image right down to around 5 centinmeters.

Yes, it's probably best to take the picture at the closest resolution to what you want it to be.

Errrr NO! ;)

It is best to take the picture at the highest resolution that you can and then sample down if needed.

I can point you to a number of articles and tutorials on sharpening that should see you right, look for the sections on Resampling and Resolution and also Sharpening and USM slightly further down http://members.ozemail.com.au/~binaryfx/PSTV_links.html#H

I don't get it, why would you want to take it at a higher resolution, if you KNOW you're going to scale it down?

why reduce the amount of true information before you start what is, in effect a destructive process?