need a bit help understanding image resolution

I am not so fit with computer and photoshop and now i need your help!

The company where I work, has old advertisements. These are 1/8 Page. Now I was trying to make them again, with our new logo and colours. I made them first with Adobe Fireworks and then with Photoshop  CS4. Both times the quality is so bad, that I can not use these for Magazines. I can not even read the text after i print it. There is everything bad, Foto, Text, everything blurred...

Is it possible to make small advertisements with photoshop, or do i need another programme?