I have been trying to print scanned images of my photos onto bookmarks to be used as a "marketing" tool. The images are scanned at hi res; when I reduce them to the size needed (approx. 1+1/2 in. sq) with my chintzy photo software, they come out blurry.
Any suggestions? Do they need to be re-scanned at lower res? (I'm hoping to avoid that).
And is it appropriate to ask this somewhat digital question?

No in this area, I would suggest you ask your question in the grey area at the least, at the most, there are several website dedicated to answering this exact question.

Dave

I've moved this to the Gray Area.

Try reducing in steps, 50% at a time, and resharpen (if your software has that facility) at each step. In PhotoShop I resharpen in decreasing increments as the image gets smaller, so it doesn't look oversharpened.

An alternative, if your software doesn't support Mr. Goldfarb's method, is to scan at the size and resolution closest to your intended output. Not the best way, but probably better than the results you have been getting.

Suggest that you resize the file to desired dimensions at 300ppi using "Bicubic sharper" option in photoshop, saving this as another file. You can do this in one stage. Then you may well need to apply some further Unsharp mask sharpening so that it looks crisp. This is referrred to as 'Output sharpening' and the amount depends on the output device being used (web, inkjet, lightjet etc). Google for Photokit sharpener to find out more details. But can be done without their plug-in. They suggest viewing at 50% to determine the appropriate amount. Beware of getting white halos if too much is applied.