At least for my iPod Touch. When you save any image that has a dimension which is bigger than the screen size, will appear pixelated when viewed in Photos. However, when you download it to your Desktop, it looks perfectly.
Here are the screen shots to illustrate the problem, with a little help from Golden Globe winner Kate Winslet. The first screen shows how the image appear in an email. After saving it, the second screen shows the thumbnails in the Camera Row and the third shows how pixelated the image looks when viewed full screen in Photos.
For comparison, here is Kate Winslet in full glory after downloading the saved image from my iPod Touch.
Does it occur on the iPhone? Do let me know. Thanks.
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Dude, i have the same problem on my Iphone 2.2.1 hasnt fixed jack!
Same here. Irritating as hell.