http://www.articulate.com/forums/articulate-presenter/7238-quality-loss-screen-shot-images.html

If you’re having issues with the graphics being distorted after publishing, you can refer to the Word of Mouth blog below:

http://www.articulate.com/blog/optim…wser-settings/

This issue is related to how Flash handles non-vector images and small text (we don’t recommend including small text in images; you’ll see much better results if you type your text in PowerPoint).

You can learn more here: View Document.

To work around this issue you could try several things.

1) Go to Articulate -> Player Template Builder -> Other -> Browser Window Settings -> Presentation size and select “Lock presentation at optimal size.”

2) When you create your image make sure you are creating the image at the exact scale you want it to be. So if you want an image that is 340 pixels wide by 240 pixels deep then this is the size at which you should create the image. Resizing images in PowerPoint will have a direct impact on the quality of the image in your published output.

3) Try using a different file type such as emf, jpg, or png.

4) Try converting the screenshot to SWF. This will produce the best results. An inexpensive tool that can do this is Image2SWF: Vertical Moon | Convert Images to Flash