Yay! Just wanted to say that this issue has now been solved, and I think it will be a great improvement in the next update release!
For those interested in the technical aspect of this issue, please read here:
www.kirupa.com/forum/archive/index.php/t-192428.html
We have now worked around this problem, and I think the scaling quality may even be BETTER than in V1 because of some enhancements to the flash player rendering engine. In fact, scaling images upwards also sees a major benefit.
I made an example of how the scaling in next release will be - Try scaling your browser up and down to resize the images:
https://www.photo.gallery/quality.swf
The image on the
right shows how images are currently resized in V2, while the image on the
left shows how images will resize after next release!
It also solves another issue: Scaling thumbs effect on thumbnails rollover!
Just let me make one thing clear: No matter how good/improved the image scaling method is, 100% original size is always best.