InDesign only produces a lo-res proxy for the image.
Try setting your View>Display Perfromance to High Quality.
It's hard to see what's going wrong with the image as you've used a JPEG which added compression - so both images look the same.
PNG is better for the screen than JPEG - can you upload PNG screen shots of your artwork?
Also - please note that Smart Vector objects are only vector inside Photoshop and outputting (printing) from PDF.
All smart objects, no matter what file format are always rasterised when insert to another document.
The only objects that can retain vector data is Vector Masks, Vector Shapes, and Text Layers (effects will always be rastered).
And the only editable supported file for files with these elements is an Photoshop PDF.
Note - all smart objects will always be rasterised when inserted to any program to output, smart vector objects only retain their vectors for scaling in photoshop - they are rasterised on output.
For this reason you should use Adobe Illustrator.
> Try setting your View>Display Perfromance to High Quality.
As stated it's set to High Quality
> It's hard to see what's going wrong with the image as you've used a JPEG which added compression - so both images look the same.
Please click on both images to see a higher quality, the difference is clearly visible on the edges even with possible JPG artifacts
> Also - please note that Smart Vector objects are only vector inside Photoshop and outputting (printing) from PDF.
Just to make things clear: I saved a plain pixel image as PSD without any layers/effects/smart objetcs etc. And I imported that plain ole pixel PSD into ID without any modifications. And the result is as shown.
As I said - InDesign doesn't display the image directly - it uses a proxy.
It could be that it's just not displaying a high enough proxy for you to see.
How does it look when you file export and choose PDF - set it to 300 DPI.
Display quality setting notwithstanding, InDesign's proxy image is just that...a proxy...not your actual image. Evaluating its on-screen appearance in the editing environment is a waste of your time and energy.
I don't think so Tim - it is what it is.