I have tried increasing the quality to 100 but they still look blurred. Could it be that the image resampling function that resizes the images is being called twice, so they are getting blurred since they are being resampled twice? I can not find the function definition for ImageCopyResampled anywhere in my eZ folder - only where it is called in the ezimagegdhandler.php file.
I don't think it is a problem with GD - I have written my own image resizer and this gives great results. When I add an image, when it first appears in the editor if looks ok but when I click "send for publishing" and then refresh the browser window it looks slightly blurred... could it be resampled twice maybe?
This is true. It has been like this for years. Your images will indeed be resampled several times. This clearly has something to do with in which sequence you place the image settings in image.ini (or your override). To avoid resampling you should place the <b>largest</b> scaling first.