I have noticed that when I insert pictures and graphics into a .docx file, they appear blurry. When I save the file as a .doc, the very same images are sharp.
It is as if the .docx files render the graphic content differently.

I've tried different image formats (jpg and png), but the same thing happens.

I am using a Mac running the latest Mavericks OS with Word for Mac 2011
I cannot find any settings that address compression or image values, other than the "Compress" setting in the "Format Picture" tab. It does not seem to make any different to the display.

What perplexes me is that if I save as .doc, the images are sharp, indicating nothing is actually affecting the image itself, just how it is displayed on screen.

Does anyone have any idea?