I tackled this same problem yesterday with local ID photos (1.5x1.5"), this
is what I did...
I use the Sony F505V camera for the shots on 1.8 Mpixel resolution, I then load the picture to Pain Shop Pro and go to "multiple image print", I then scale the picture so I can get more than one prints on the printer page. Have the ruler active while doing this. Scale the pictures so that they "look" more or less the size you want (the computer display is not very acurate) and do a couple of print tests... It took me about 15 minutes and 2-3 test pages before I got the right size. Remember to save the layout so you can use this size again. I print using the HP 959C with Photorealism set to on...