I have some image I got from the web. Let’s say that the max size I can make it without pix elating is 500 x 500. So with that said, should I make the @2x version of it, simply the 500 x 500 version, and regular version (ie for non retina) 250 x 250? Just a little confused about sizing the image correctly for the right screen resolution and any help would be appreciated.
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Yes what you said is correct.
Keep in mind though that once you put it on the device the @2x will display as 250×250 pts on a retina screen.