Hi Rick,
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.
I've attached the original image.
cheers,
cheers,
Derek