Going back on what ive said I did run across an interesting observation, in these two examples you can see how a picture looks after being uploaded naturally on the treet site, example 2 shows the image when using the edit feature.. notice the quality with crop options (at the same resolution) is much higher then the normal image everyone see's.
example1
http://i40.tinypic.com/35n3gp4.png
example2
http://i43.tinypic.com/34edzpv.jpg



You are sooooo right. Good eye.
Let me take a look at why that happens, I am sure I can fix it.