Usage examples
maxwidth & maxheight
Shrinks an image to within the specified bounds, but maintains aspect ratio. Does not add padding.
?maxwidth=100&maxheight=100

Notice the resulting image is 100x65.
width & height
Shrinks an image to exactly the specified size. Adds whitespace and centers to maintain aspect ratio.
?width=100&height=100

Add stretch=fill to 'stretch' the image instead of adding whitespace.
?width=100&height=100&stretch=fill

Add crop=auto to crop the image to match the final aspect ratio. Crops edges minimally.
?width=100&height=100&crop=auto

bgcolor
Dislike white? Transparent padding is added (when required) for PNGs and GIFs, but jpegs don't support transparency.
Add bgcolor=name or bgcolor=33ddff to set the background color. Named colors and hex values supported.
?width=100&height=100&bgcolor=0066a1

What if I want to grow images?
Well, by default images are only shrunk, but you can choose to expand either the photo or the canvas with scale.
scale=both scales both up and down. scale=upscalecanvas scales down, and adds a margin to 'scale up'. The default is downscaleonly.
.... under construction. Maybe you should check out the old samples page?
Version 3 and version 2 are fully compatible - all v2 commands work in v3 (with the right plugins installed).