Plain and simple, "pixelization" and distortion are the results of resizing an image in an HTML editor.

distorted

 

But if we Photoshop the same 256 color transparent GIF and resize it to 200 pixels wide by 100 pixels high, the results are better.

clear

Resizing in Photoshop instead of the HTML editor you use will also reduce file size, conserving server space and sparing folks using dialup from the dreaded delay that comes from trying to load a page full of large graphics.

Click here to see one of those types of graphics...