you shuld try using a high quality image if your image resolution is low and dpi is lower than 72 then it may not show the diffrences when switched from typicall to high quality, if the problem is with all kind of images then it seems the prefrences are corrupted and for indesign there are 2 prefrences you have to remove them both deleting prefrences will cause (you will loose all your shortcuts and changes that you have made in indesign)
indesign prefrences win xp: C:\Documents and Settings\[User Name]\Application Data\Adobe\InDesign\Version #
C:\Documents and Settings\[User Name]\local settings\Application Data\Adobe\InDesign\Version #
win 7: c:users\username\appdata\local\adobe\version#
win vista same as win 7
mac osx:machd: /Users/[User Name]/Library/Caches/Adobe InDesign/Version [#]
/Users/[User Name]/Library/prefrences/Adobe InDesign/Version [#]
rename the version folder or move them to the desktop
then launch indesign and try placing any image on a new document and try switchin from typicall to high quality
I'm not familiar with the Lynda tutorial, but aside from the possibility that the image is low-res to start, there are actually two places and seetings that can affect what happens to display quality.
You can change the display quality globally from the View menu or in the prefs, but there is also an option there to Allow Object Level Settings. If that is eanbled you can right-click an individual image and set a display quality explictly that differs froom the default. This is sometimes used to adjust performance when very large images are used or to be sure a particular image is always shown at its best even if others are less critical. IF an object level setting has been made, adjusting the global setting will not affect that image.