They way you did it looks logical enough to me. I do not use Photoshop, but the steps will be the same. What was the size in pixels before you scaled it down to 80x80?
Scaling it down from e.g. 800x800 to 80x80 you compress 10x10 pixels into one pixel and that gives an awfull lot of loss of information. The only thing you could try is a little (but 10% at the max) bit of sharpening on the 80x80. It is however possible that it becomes worse. Information lost in scaling down is lost.
The DPI has no influence here. It is only functioning in conversion from (scanning) and to (printing) paper. In electronic form there are only pixels.
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Henk
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