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RE: Profile pic problems
The reason it does that is because WLM compresses the image if you've checked the option to use it where ever you sign in.
You can uncheck the option to transfer your display picture and personal message to other computers when you sign in, by going to Tools > Options > Sign In.
As a result, your display picture won't turn fuzzy, however the downside is that when you sign in on another computer, your display picture and personal message won't be transferred.
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