Try resizing the picture to the correct size and see if that helps. However, it shouldn’t be cropping your pictures. Do you have a link so we can see the picture on the live site?
Thanks for the reply. I have tried to resize it a couple of times but no change. Here is a link to the preview: http://tlwfc.com/?p=1&preview=true&preview_id=1&preview_nonce=97b5c20452
The link you provided was to a draft, so we cannot view it. So this is a picture in a post? Try posting the post and then send a link to that.
The image size is set to width of 300px and height 200px.
See if this thread helps you:
http://wordpress.org/support/topic/coraline-post-images-resizedcropped-why?replies=17