I read a few threads on the message board, most of which complained about the size and distortion of thumbnails. The issue was fixed by changing the thumbnail settings.
My problem is with regular images in general. For instance, I’ve tried both uploading JPEGS to the /image directory of CS-Cart through FTP and by opening up the visual HTML editor and uploading JPEG files through that.
The problem is, when I view the site, the images look stretched, distorted and blurry. It’s all images actually… even my company logo that I uploaded through the admin looks distorted.
When I right click on the photo to view it, it’s crystal clear and sharp. What’s wrong? 
I have had this problem with 1.3.
I don’t have any size tags in the image source (ie: width=? or height=?). They are set to appear as is.
Thanks for any help.