I believe I have "stumbled" onto a possible solution to compressed/pixelized contact images. I have owned the Hero, Droid and now the EVO. I have tried everything imaginable through exchange and gmail accounts by sending, receiving and downloading images to contacts with no luck....until today!! I first start with an email with a photo attached from a computer and sent to my gmail account on my EVO. I click the download button the image downloads and then the image comes up on the screen after it completes the fetch of the attachment. Now with that image on the screen click the phone's menu button to share this image via text message as a mms to yourself. I use the Handcent app from the Market and when that image is RECEIVED press and hold on the image to copy it to the SD card. Now you should be able to see two thumbnails of this image in the gallery and the RECEIVED mms image that was saved to the SD card will be noticeably sharper. The lower res one is the first one from the first download from the gmail email. Your mms should show two images the one you SENT and the one you RECEIVED. You need to use the RECEIVED image. For some reason this one is not affected and compressed. The SENT image can not be used, I tried that. It is the RECEIVED mms.* Then in contacts choose the person you want, click the edit button, tap the square where the image shows in contacts, choose gallery and pick the sharper of the two that were saved. It has worked for me on the EVO today and my daughter's Hero. I have not tried this on the Droid yet. Multiple test calls show a nice, sharp contact image!!! Good luck.