The table wrapper will only "shrink" down to 180 pixels wide. If the pal boxes look a little wider then it's normal. Kinda tough to get an decent effects with less than 90 pixels on each side.
As for cutting gif files: Set the grid to 10 x 10 pixels and enable "snap to grid". Then use the mask tool to highlight the areas that you want to cut into gifs. Make sure you set alpha transperancy before you cut the corners
