Thanks for the reply, Jacee. The pix seem horizontally wider than they should be, or the height narrower. I have tried other picture viewers; same results. The aspect ratio is off.
The background pix of Windows 7 are perfect and sharp.
In doing some more research, the ones that are distorted are less than 1024 pixels. I am still experimenting. I love Windows 7, but that's the only thing that has stumped me.