Is there a way for images to be a smaller size in category view and then in item view they enlarge ?

You can choose different sizes for Pics in the Options. In the Category Options of your Cat you can chose which Picture Size (x-small to x-Large) you want to use in the Category View for Leading, Primary,... Item and which size you like for the Item View.(try a little in the Sidebar and you will figure it out)

greetz