Max, here’s the approach I use, with generally good results.
1. Go to File>Save for Web. You’ll get a split screen view of the image before and after the save.
2. In the lower right hand corner of the Save for Web dialog box, you’ll see a place to put in a new size in pixels. If your image came out of a standard format digital camera, you should be able to put 800 pixels in place of the larger number (width or height) and have 600 pixels or thereabouts show up where the smaller number was. After setting these dimensions, hit the Apply Button. (This step gives you a size that’s easily viewed by most monitors with minimal scrolling.)
3. Now look below the right hand copy of the image (which is the after adjustment depiction). It should say JPEG and give you a size in K (plus a time for someone with a 56kbaud modem to download). If that number is more than you want (you mentioned 170 kb), go up to the right hand corner of the dialog and click on the Quality arrow. You’ll get a slider; as you move it to the left and release the mouse button, you’ll see the size number under the After photo get smaller after it generates optimized. Experiment – either up or down – with the slider until you get the size you want, then hit OK and give it a name and location.
I think you’ll be happy with the screen image you get in this way.
Chuck