Thanks for checking it. I get the same results as you when I use the images I sent you; it was actually a crop of the full logo (attached).
I think I know what is happening, although i haven't checked the PHP code. If you inspect the CSS of that compact logo it appears that a 100x100 pixel image is expected. So I opened by original 164x40 pixel logo image in an image editor resized it to 100px wide and then resized it to the display settings I was using (40 px high) and voila! the blurry image is duplicated.
So I think there must be some code that resizes the compact code to 100px wide when it is uploaded. I've seen this behavior in WordPress.