help on resizing JPEG Images w/ minimal pixelation

[PSource]

Knowledge in Digital Imaging (1-100): 10+-
Currently Using: Photoshop CS2/ Illustrator CS2
Current Method for Resizing: Click&Stretch "Transform Controls>Increase Image Height/Width"

Here is the situation, I'm trying to resize images of low resolution to a larger size, about 400% larger than the original

Heres what I would like to do. Take this image:
Skinz.jpeg
Width:333px
Height:400px
File Size:24.7KB
and resize it to 11inchesx16.25inches with as little loss to quality as possible.
I appreciate all your advice and I would like to see what every can do with this sample.

[graficalicus]

there's a strange quirk in PS that allows you to increase the size of an image by 110% at a pass with no pixilization - you can theoretically blow a thumbnail up to the size of a billboard with very minimal quality loss -

I even made an action for it that I linked to the <F12> key to do it as many times as I need - grab the action here:
http://www.graficalicus.com/download...hp?image_id=78


for Elements users:
(if you're an Elements user, you can also use this action - I made an installer for it, as well as several other actions - that will put it in your Effects palette where you can use it at will - all the free "Action Packs for Elements" are in this category on my site:
http://www.graficalicus.com/download...s.php?cat_id=8

If you want just the "110% Blast!" Action, get it here:
http://www.graficalicus.com/download...p?image_id=104

- the 110% Blast is also included in the "Handy Actions!" pack - these are all free downloads