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In order to reduce the file size of a 26 megabyte file, you can compress images in two ways. The first method involves selecting a picture, clicking on the picture format tab, and choosing the compress pictures option. You can then select the desired compression level and delete cropped areas to further reduce the file size. The second method is to click on file, compress pictures, and the default option will compress all pictures in the file. After making these changes, the file size will still appear as 26 megabytes until you save the changes.