Sally,
A few things come to mind,
1) What format and quality is your camera set to? Are you shooting in jpeg, and if so, what number of pixels and what quality setting?
If you have your camera set to record at less than the full number of pixels available and/or less than maximum quality jpeg, then youcould get the results you describe.
2) How big is the image you are starting with? You say it is 240x160. If you are printing this onto A4 then I can imagine the results will be horrendous.
If you haven't got the original image at the maximum quality setting and maximum number of pixels your camera is capable of taking, then you could find yourself very limited by the size of the image you have.
Duncan
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