I have set my image up and no matter what size file I upload, I keep getting the message that my image is too large. The image I have in this example is only 80 kb
That has nothing to do with the file size. It's telling you the width of the image is too large and exceeds the maximum.
After the image uploads, then the whole pic is not shown even though the pic is smaller than the limit. I've tried setting the limits higher and the image but to no avail.
Adjust the maximum width and height if you want a larger image. If you don't want it to crop the image at all then turn off cropping.