Header Image Resize - Background Color

Hi, I am trying to resize my logo (to be smaller) in the header. Is there a way to do this is the code, or do I have to edit it and re-upload it? I've gone into the header.php and entered this <img src="image.jpg" width="200" height="150"> and no matter what I change the width and height to be, it remains the same.

The second thing I'm trying to do is change the background color on the left and right sides of the site (to the left/right of the header, content area, footer). Is this possible? I feel like my site looks kind of "blah" right now so I was hoping that might help a little...any suggestions/critiques are welcome (I'm only working on layout/design, so content is lacking and pictures in the slideshow are irrelevant).

http://4seasonsoutdoorservices.com/redo/

Thanks so much in advance.