Thank you gentlemen. These are certainly workarounds. I consider this either a bug though or a design flaw, or a design decision that I do not understand the reasoning for...
It doesn't make sense to me that placing an image in a Column or grid with sufficient ItemSize to show the full Image should not show the full image when not using a Grid or Column ceratinly does show the full size as in
With[{img = ExampleData[{"TestImage", "Lena"}]}, ImageResize[img, 400]]
I will send this query off to the bugs folks to parse as they see fit...
Thanks again!