You are talking about Image Ready(which is found under file -> Edit in Image Ready) there. I personaly couldn't figure out what you meant at first myself.
I know my Photoshop CS2, outside of Image Ready, doesn't have anything along what you discribed.
Anyways I always use the Save for Web command myself and for jpeg and the ilk that works fine for changing the size/qaulity.




And enter a number under 50 
