We apply a multiresolution analysis to hard X-ray (HXR) time profiles f(t) of solar flares. This method is based on a wavelet transform (with triangle-shaped wavelets), which yields a dynamic decomposition of the power at different timescales T, the scalogram P(T, t). For stationary processes, time-averaged power coefficients, the scalegram S(T), can be calculated. We develop an algorithm to transform these (multiresolution) scalegrams S(T) into a standard distribution function of physical timescales, N(T). We analyze 647 solar flares observed with the Compton Gamma Ray Observatory (CGRO), recorded at energies greater than or equal to 25 keV with a time resolution of 64 ms over 4 minutes in each flare. The main findings of our wavelet analysis are: 1. In strong flares, the shortest detected timescales are found in the range T-min approximate to 0.1-0.7 s. These minimum timescales are found to correlate with the flare loop size r (measured from Yohkoh images in 46 flares), according to the relation T-min(r) approximate to 0.5(r/10(9) cm) s. Moreover, these minimum timescales are subject to a cutoff, T-min(n(e)) greater than or similar to T-Defl(n(e)), which corresponds to the electron collisional deflection time at the loss-cone site of the hare loops (inferred from energy-dependent time delays in CGRO data). 2. In smoothly varying flares, the shortest detected timescales are found in the range T-min approximate to 0.5-5 s. Because these smoothly varying flares exhibit also large trap delays, the lack of detected fine structure is likely to be caused by the convolution with trapping times. 3. In weak flares, the shortest detected timescales cover a large range, T-min approximate to 0.5-50 s, mostly affected by Poisson noise. 4. The scalegrams S(T) show a power-law behavior with slopes of beta(max) approximate to 1.5-3.2 (for strong hares) over the timescale range of [T-min, T-peak]. Dominant peaks in the timescale distribution N(T) are found in the range T-peak approximate to 0.5-10(2) s, often coinciding with the upper cutoff of N(T). These observational results indicate that the fastest significant HXR time structures detected with wavelets tin strong flares) are related to physical parameters of propagation and collision processes. If the minimum timescale T-min is associated with an Alfvenic crossing time through elementary acceleration cells, we obtain sizes of r(acc) approximate to 75-750 km, which have a scale-invariant ratio r(acc)/r approximate to 0.03 to flare loops and are consistent with cell sizes inferred from the frequency bandwidth of decimetric millisecond spikes.