Just an fyi - You should never save images from google to your hardrive and use them in your blog. You are just asking to start getting copyright infringement notices and it will cost you a great deal trust me. Check out this article about it: http://www.mediacrazed.com/google-images-for-your-website/
Regarding your media button its hard to say, there isn't enough information like what version you are running and how you are adding the images. Are you loading directly to the media library or adding images from the post? If you are running any of The recent updates it has changed the way this looks but the options to resize are still there. When you insert your image you can see the right side has image details, where the insert post button is. If you scroll down in that pane the very last thing is the image sizes you can choose from.
hope that helps, otherwise of you can be more clear it will be easier for people to answer you. :)