I posted part of this in another topic, but decided it needed it's own, because this was a rather frustrating issue for me, to which I came up with an odd solution. Hopefully other gamers in paper flats will also benefit.
Resizing paper figures.
This can be more difficult than you'd think, though it can be done, but pixelation becomes an issue.
For anyone who has run into this problem, the best solution I have arrived at, oddly enough, is Microsoft Word.
Capture a figure on screen with Prtscrn, make it into a png with Paint, but don't resize with Paint, which will badly pixelate the image.
Instead, open the png in a Word document, and resize almost to your heart's content. I have gotten away with increases of almost 200% and decreases of only a little less than that before the image starts to look blurry.
It surprised me how a very small amount of resizing in Paint and similar programs can make an image very grainy very quickly, and also that the problem tends to surface with very little resizing.
I discovered this while going through some star fleet crew figures on the free hoards section of the Cardboard Warriors site. They had a nice lion-man that I thought would make a neat looking Kzin, except that he was only the size of a human. I put him through this process and instantly grew hom to a respectable 42mm tall, or 9' in 28mm scale.