Šime helped me solve any issue with image stretching proportionally when the browser is resized:

http://vidasp.net/tinydemos/image-stretch.html

I can't seem to solve the slideshow portion of this implementation.  The slideshow will feature both jpgs and flash movies. I'd only like the jpgs to resize, while the videos will stay fixed. Simple fade or even hard transition between work. 

Any help would be appreciated.