Personally, I'm for the Photoshop (PS) method. Since you are using Vray, you can render the alpha channel. Then when you save the image, choose PNG and anywhere that you see sky in the rendering will be transparent. In PS, open your PNG and add your image as a layer under the rendering. Scale the background image all you want. If you have glass or other transparent materials, make sure you check the alpha box in the material's options so you'll see through those too. If you decide to use this method and I'm not clear, feel free to ask for clarification.
If you really want to include it in the rendering, then the sizing issue has to be taken care of in the environment map. You can change the number of times it repeats and the rotation, but it is trial and error since you can't see it until you render. In the Environment options, select the M and edit the values for repeats. Larger numbers means more repetitions which means smaller image.