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JPEG is a very poor choice of format for images that contain text or images. JPEG achieves its small file size by "throwing away" information from the image, and "blurring out" the details. This works great for "real world" photographs (which is why digital cameras use JPEG images), but for text it's horrible - lines blur and lose definition - it's like looking at your text through a pair of out-of-focus glasses.
Use a file format like TIFF of GIF, not JPEG. It doesn't do this.
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