Layout size set to "small" yet shows big in "Recent Update" page

Hello,

Please see short video clip: http://www.easywebvideo.com/ebda9320

I need to know how to make the images "small" instead of medium or large in the Recent Update/Activity Stream page.

I went into "Settings > Photos" and changed "Layout Size" to small but it still shows big on the "Recent Update" page.

Thanks

Ron