> I tried making new font, but it wants enourmous sized font in Photoshop.

This one I can answer (better late than never, I guess).  Check the
resolution for the image (go into the Image Size settings).  Make sure it's
set to 72.  It might be set to something like 1, in which case it requires
an extremely large font.
----------------------

How to handle B&W prints from the scanner
-----------------------------------------

In PaperPort - Use B&W photo (or is it Custom?) - advanced - Choose B&W

A. Save as PSD
   --> grayscale, then RGB
       size & rotate
       export to gif --> Palette adaptive --> colors 8

B. In Photoshop - set mode to INDEXED, pallete to adaptive, color depth to 3 bits or 4 (pick lowest that looks good)
   Then set to RGB (or is it the other way around?)

Crop

Export to gif. Click on area to be transparent - click off interlace

Pictures
--------

Resolution = 72
Layered if adding text
Do Save As to copy
Quality=6