When you installed paint shop album it probably registered itself as the default program for opening jpegs, which is why the files are saying they are paint shop album files. You can change that by going into the folder, clicking on tools>folder options... and going into the 'file types' tab. Scroll down the list to the JPEG file type, select it by clicking on it and there will be 'change' box below. You can change the program to Internet Explorer so when you click on Jpegs it will open them in your browser, you can choose whatever program you like then to edit them.

It sounds like the photos are too big, the finepix software allows you to resize them, click on the 'Image Utilization' menu on the left and 'resize image' should be in the list below, when you click on this button you can specify the file size, 640x480 is perfect for on here but you can give any dimension.