WebTV seems to have fixed this problem now! So you probably don't need to worry about it anymore!
When you upload images using the ranchoweb.com system and WebTV+, the images will appear smushed like this one:
This HTML tag :
<IMG SRC="http://www.ranchoweb.com/images/2gijoes.jpeg">
will create this image:

But if you put in these height and width attributes: width=448 height=344
This HTML tag:
<IMG SRC="http://www.ranchoweb.com/images/2gijoes.jpeg" width=448 height=344>
will let this image appear:
Much better, don't you think?
You can either enter these tags manually, or let the ranchoweb.com Free Fancy Ad Generator do it for you!