Outlook 2003 SP3 on Win XP

In a new email, I insert a JPG picture as a logo (see below). In the original the image and text are sharp & clear. But when I send the email to myself, the returned image is fuzzy and seems to be at a much lower resolution. The original high-res JPG (78kb,120dpi, 16 bit color) was not compressed, but the returned image appears to be compressed and reduced in size by about 25%. I'd prefer for my logo to not be associated with low quality.

Does Outlook automatically compress outgoing embedded images? If so, is there any way to turn it off?



PS---This image in HTML format looks OK on my screen. But the same image in an email looks blurry. Does Outlook offer any control over image quality in outgoing emails?