Pictures Won't Resize

I consider myself pretty savvy when it comes to computer stuff but can’t seem to figure this one out. When I upload a picture to wordpress and try to insert it into my post, the picture will stay the same size and be stretched.

http://smg.photobucket.com/user/ozone1/media/FUCKINGDOG_zps65bd9c2a.jpg.html

Not the best example but it shows whats the problem. Even if I change the code to: <img class=” wp-image-1848 alignright” src=”http://**/wp-content/uploads/2014/10/700upl-150×150.jpg&#8221; alt=”700upl” width=”20″ height=”20″ />

or anything smaller, it still comes up looking like its over sized.

Then I even went into Media and scaled the original image to one that was more manageable and STILL it is the same stupid over sized dog.

Is it I have to clear my cache since its saved in my cache or is it something else?

Thanks in advance