Image for menus

I am using photoshop to edit image for a webpage made for fun but sadly the images output for use always have bigger sizes and look ugly in the rollover, I usually use 120x30 size for the button images/ Even when I resize them to 60x15, they are still too big in the face. (I guess its size is doubled the "User CP" in the above link to user profile of this size )
What size doyou usually choose to make such images.
Also, arethere any other software that are used in business companies to help build web page faster than Dreamweaver ?

Thanks