The good news is that Photo Deluxe seems to be the image processing bundled software of choice for 99.9% of all digital cameras sold nowadays. The bad news is that I've never used it. I also have never heard of your camera. Not a bad start, eh?
Seriously, when you set a particular picture quality and size in your camera, you are controlling two things: 1. Amount of data compression (the more compression, the smaller the file size is and the more pictures you can fit on a given size card, but the more compression you use, the worse your picture will be). The compression setting on your camera will probably be related to words like "normal" or "fine". 2. Size of the picture controls how many pixels will be output to the .jpg file. These names may take the form of "VGA", "SVGA", "XVGA". Based on the fact that you're only getting 8 pictures on that 16 MB SM card, I'd say you're running pretty close to least compression and maximum picture size (largest file size). Reducing the resolution to something smaller will decrease the file size, but what you should do to get under the 102KB maximum on Arbor is to look into Photo Deluxe and see if they have any method to resize your pictures. To make a long story short, you want to run a maximum of about 150 dpi (dots per inch, 75 will do for 17" computer monitor resolution), then resize the picture for about 600 X 800 pixels as this will have it fitting pretty well on most 17" monitors that are set for 1024 X 768 pixel resolutions or thereabouts. People with smaller monitors or ones that have their video cards set for lower resolution (like 800 X 600) will see your picture sometimes extending beyond the edges of the screen. If they complain, don't worry about resizing your picture again especially for them. Just tell them they should go out and get a 21" monitor that you can easily read the fonts on at 1280 x 1024 resolution. Just making the .jpg image smaller won't do it by itself, as you must compress the image when you save it. If you "save as" a .jpg file, you should get a screen that asks you how much compression you want to use, as well as the resultant file size. Set the compression to a level that results in a file size of less than 102KB in this case.
I wish I could be more help, but I know neither your software nor your camera. The priciples described above, however, apply to all digital images.