A Cry for Help UPDATE (with Fix)

Take a look at my header.  You know, up there at the top of the page.... See how it's all blurry?  (Of course you do.)  I can't figure out why, so I'm asking for some help.

I use Picasa to design my headers.  I create a collage in Picasa then use the Export button to save it in My Pictures files on my computer.  I usually resize the image to either 1024 or 800 pixels and then use that image for the header.  The image is clear when I veiw it in Picasa and from the My Picutres file. I have had no problems with blurriness in the past but I can't get it clear this time. 

Here's what I've tried to fix the problem:
- Redone the header using different images (still blurry)
- Used Microsoft Image Composer to redesign the header (still blurry)
- I tried leaving the image it's original size (it was HUGE and still blurry)

Other Stuff:
-The photo I used came directly from the photographer's disc
-I posted these same pictures on Facebook and they were crystal clear
- All of the other pictures on the blog are clear (in the posts, on the sidebar, etc)

I think that the problem must be with Blogger somehow, but I don't know the remedy so, I am asking (begging?) for help.  Any suggestions?  Please (please, please) leave them in the comments.

UPDATE: I fixed it!  In case anyone else is having this issue, I uploaded the image using the URL from the image in my Picasa Web Album instead of uploading it from my computer and now it clear as can be!  Yipee!