you cannot put a large image on a button.
one way to do it, is placing a UIImageView with property ScaleToFit (or AspectFit) behind a Custom button with no image. Then make sure the button is on top of the Image by Move To Front in interface builder.
Then, hook the button up to IBAction and run this code:
Code:
-(IBAction)showbigimage {
UIImageView *bigimg = [[UIImageView alloc] initWithImage:[UIImage imageNamed:@"yourimage.png"]];
bigimg.contentMode = UIContentModeScaleToFill;
bigimg.frame = CGRectMake(0,0,320,480); // assuming portrait orientation
[self.view addSubview:bigimg];
[bigimg release];
}