Graphic Resolution in output bad

I'm trying out the trial version. I published some sample pages to HTML and couldn't believe how out of focus all of my screenshots were. They looked fine in the Lectora application. Somehow the publishing process caused the screenshots to become grainy and out of focus. I use Snag it to do screenshots. Is the problem Snag IT or Publisher? I need to resize the screenshots because they are too large to fit the Publisher template screen. Any suggestions?Thanks.

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