Here is a very basic example (with many globals, without input validation...) of image scaling: http://jsfiddle.net/89HPM/3/ . It's using the File API and a canvas element.
As @anu said the save can be done using toDataUrl method of the canvas.
In similar way you can achieve crop.
JavaScript
(function init() {
    document.getElementById('picture').addEventListener('change', handleFileSelect, false);
    document.getElementById('width').addEventListener('change', function () {
        document.getElementById('canvas').width = this.value;
        renderImage();
    }, false);
    document.getElementById('height').addEventListener('change', function () {
        document.getElementById('canvas').height = this.value;
        renderImage();
    }, false);
}());
var currentImage;
function handleFileSelect(evt) {
    var file = evt.target.files[0];
        if (!file.type.match('image.*')) {
            alert('Unknown format');
        }
    var reader = new FileReader();
    reader.onload = (function(theFile) {
        return function(e) {
            currentImage = e.target.result;            
            renderImage();
        };
    })(file);
    reader.readAsDataURL(file);
 }
function renderImage() {
    var data = currentImage,
        img = document.createElement('img');
    img.src = data;
    img.onload = function () {
    var can = document.getElementById('canvas'),
        ctx = can.getContext('2d');
        ctx.drawImage(this, 0, 0, can.width, can.height);
    };
}
HTML
<input type="file" name="picture" id="picture" /><br />
<input type="text" id="width" value="200" />
<input type="text" id="height" value="200" /><br />
<canvas width="200" height="200" style="border: 1px solid black;" id="canvas"></canvas>
Here is a blog post which I made about that basic example: blog.mgechev.com