Debut image quality really poor?

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Hi everyone,

I have been battling with poor image quality on my site for weeks, after many discussions with the gurus, nobody can seem to help. My site is 

Can any body see a reason why the images are so low resolution? 

A wierd thing happens on the mouse hover on the home page - a high resolution image is reveal - so I know that the quality of the images is good, the theme seems to be compressing/downsampling them some how, for some reason on the home page and product page.

Please help me somone! :D