I found this error today by uploading a wrong set of images to the album folder. The set of images that I uploaded are small images, width does not exceed 3 or 4 hundred. Now what happen is that, when you visit the album, these images are expanded to fit the setting in config.php (image_size) if the setting width or height is bigger than the actual image.

This makes the pictures look ugly as they are pixelated, and are extremely blurry.

true...i made an album to display buttons I made (80x15), and they get all zoomed and display such a small amount it looks horrible.