To save photos from the photo stream to your camera roll, select a photo, click the share button, and select "save to camera roll". It will remain in the photo stream as well, until you delete it.
Hope this helps.
Reduced size? I guess you could somehow do that via a desktop photo editing program, but I'm not sure how you'd do that directly from the iPad. How big are the images? Unless they're huge file sizes, I would just save them at normal quality.Thanks for reply. I have been doing that but wanted to be able to save in a reduced size??