When I create an animated emote on Photoshop CS or Fireworks MX 2004 and import them to Msn Live they appear really small, 16x16 i think.

Is there any setting i need to change or program i need to use to create an emoticon that wont be resized really small?

Static (non-animated) emoticons are automatically resized to 19x19 pixels. If you want to make them bigger, they need to be animated. Note that an "animated" emoticon can be animated with two static frames (so it does not appear to be animated). The animation size limit is 50x50 pixels.