Selected Answer
Hi Robert
I'm not an app developer but guess the minimum size of pictures will depend on how the picture will be viewed (e.g 23" PC monitor vs projector) and its nature (photographic vs. clipart style). From your mention of Photoshop Elements, I assume they're photopraphic so you'll probably aim for 72dpi at whatever screen resolution is expected.
Regarding image visibility however, if your instructional images relate to use of your Excel app, then it might be more useful to make the images visible when a cell is first selected or changed (so the helpful image appears when needed). You could use an event macro to toggle an image (or set .Visible to msoTrue or msoFalse if needed). This one works when cell F8 is selected on Sheet1 :
Private Sub Worksheet_SelectionChange(ByVal Target As Range)
If Intersect(Target, Sheet1.Range("F8")) Is Nothing Then Exit Sub
Sheet1.Shapes("Picture 1").Visible = Not Sheet1.Shapes("Picture 6").Visible
End Sub
Change the bits in bold to suit. If you've only one image on a sheet, Shapes(
1) would work (or other numbers).
I assume you haven't limited your shapes to rectangular (see Microsoft's guidance Make a picture transparent but note that saving an image with a transparent background from Photoshop Elements doesn't see to work so you have to set a contrasting colour using the Photoshop Elements' Magic Wand/ Fill or similar).
Hope this helps a little (and you get image size/ resolution answers from app developers).