What program would you suggest? Do I need to use one as in depth as Photoshop? What is the exact size needed to make the wallpaper fit nicely above the icons on the Storm?
Is there a way to change the size of it so it fits just above the icons on the main screen?
Actually, all these posts are more complicated than need be. If you simply zoom the picture (and move it around), while viewing an image, to what you want it to look like, you can then select BB -> Set Image as Home Screen. This will put the image as it is when viewing it.
However, if you need it to do something totally different, then yes, you will need a graphics program to adjust the image (remembering to maintain the resolution).
You can use many graphics programs to do this. Adobe Photshop is the first obvious choice. If you don't have access to Photoshop, GIMP is a really good alternative.
But for simple tasks like you are doing, Google's Picasa can do what it is you're looking to do. It can resize the image and crop it for your needs.