What you are seeing is just the screen preview. Go to Object>Display Performance and choose High Quality Display.
The same can be done for the whole document under View>Display Performance.
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View > Display Performance > High Quality Display. ID is still using a jpeg preview image, however, not the actual pixels you are used to in Photoshop, so there will always be the potential for some degradation on screen. The real pixels are used for output.
Thank you to you both. What a nit! I've spent ages faffing about with importing and reslutions, too...
Live and learn – thank you again.
That's great, thank you very much - Lynda look specially interesting, I may well have a go at that.