check your jpg quality (file/publish settings/flash) if all you're doing is loading and displaying.
The settings look ok- I think it might have something to do with it being a scalable area. ??? Also like the image needs to be "smoothed"
you said you weren't scaling your image. if you are scaling, you need to smooth your image and how you do that depends on whether you're using as2 or as3.
Im sorry- yes the image is getting scaled- I'm using AS 3.0
then you'll need to use the bitmap smoothing property.
Thanks - got it work out- pictures look MUCH better.
imageLoader = new Loader;
function onComplete(event:Event): void
var bitmapImage:Bitmap = event.target.content;
bitmapImage.smoothing = true;