How can I make an image smaller in Photoshop CS4 without reducing the quality?

Bryan

New member
I'm a designer trying to enter a logo for a contest on a websiter, and the site requires that my image be 186x135 px. But My canvas size is WAY too big for that, and when I correct the image sizing in Image>Image Size>Width:186 Height:135. It just pixelates the image. How can I resize the image and keep the resolution where it is? Do I need to use another program to do it?
 
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