Adding illustrator file to Indesign

Hey guys! im using Indesign CS5, and im trying to add some illustrator pages into an exisiting indesign file i have an existing folio of work on.
I read somewhere that if you click and drag an illustrator file into indesign it should work, but when i do, it becomes very pixilated and the resoloution quality is reduced even though the illustrator file is in A3 and the indesign file pages are also in A3.
I have included a screenshot of what happens when i click and drag the illusrator file.
If anyone can help me, please reply asap! Hahah my folio is due in a few hours
Thanks

InDesign creates a raster thumbnail called a proxy to display images placed in InDesign.
This is for placement purposes only.
As InDesign creates a dynamic link to your file - it will output the Vector file - but it displays a raster version for layout purposes only.
Using the View>Display>High Performances will generate a higher resolution thumbnail for viewing in the layout only.
Again, it's always dynamically linked to your vector file.

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