Ok I give up. I was using an older version of the animator and did not have this problem. This new version is light years ahead but I can't figure out how to resize an image. I selected the image and drag one of the nodes but the only thing that happens is the pink box shrinks but the image stays the same size. The only way I can resize the image is by changing the scale percentage.
We currently have two modes: resizing (what you are using) and scaling. To use scaling you have to change mode. You can change mode by clicking on the triangle next to the pointer tool in the top left toolbar. A shortcut for changing mode is shift-v. Let me know if there is more I can explain
Resize resizes the elements, but does not affect images or children. The results might be more obvious if you turn overflow to hidden in the object setting or work with the primitive shapes (circle and box).