| I've fixed it [:D] 
 Turns out that the page that was displaying the image had it's width and height fixed in the html.  [:I]
 
 This was slightly wider than the image being resized, and hence there was pixelation.  I removed the width/height figures from the html on the page and now it is OK. [:D]
 
 Sorry about the 'red herring'
 
 
 
 
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