Reblogged from one cool site:

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You may find that images you re-size after uploading  into your Wordpress.com blog lose some color and sharpness. If you want better image quality use an image editing application to re-size copies of your images to the specific dimensions required then upload and insert those copies.

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I waste a lot of time troubleshooting images in my posts. Timethief explains how proper image preparation changes all that.