Usually the answer to, "Can I [blank] with Photoshop" is YES.
With CS2, I would use a combination of a recorded action for the levels, and File/Scripts/Image Processor for resizing and saving. You could also put the resizing step into the action. Recording an action is simple: first create a new action by clicking the appropriate icon on the actions palette, give it a name, perform the step(s) you want to record, then just hit the STOP button on same palette.