Best diagram format to place in InDesign

Hi all,
I am creating a few diagrams - circles, lines and text - in Photoshop that I want to include in the book I am laying out in InDesign (CS6). I have tried saving the diagram as a jpg, gif, tiff and pdf (no compromising) and on transparent backgrounds where applicable but frankly, they all look pretty terrible. In particular, the text is fuzzy (I have been using Garamond, since it is a generally considered to be a good print font) even when saved and reviewed in Photoshop.
Somtimes the size of the image gets changed as well; generally it saves larger.
Any clue on what I am doing wrong and/or the best file format to use? I would truly appreciate some experience on this. Many thanks!
Linnea

Firstly, photoshop is not the correct program to be making diagrams in - you're better off using Adobe Illustrator - or if they are simple enough you can create the Diagrams directly in InDesign.
Photoshop is primarily a Raster editing program, in that it deals with pixels. Illustrator is a Vector program and allows a much better image that can be printed a lot sharper.
For photoshop diagrams  you would need a resolution of 600 PPI or in excess of that depending on the output for print.
Why the image is fuzzy?
InDesign is a Page Layout tool - when you place an image into InDesign it doesn't place the image itself, but rather a proxy image that is there only for the purpose of layout. To view a higher resolution proxy (thumbnail) you can go to View>Display Settings>High Quality - again this is still a proxy image but should show it in more detail.
The image in photoshop might be very low quality - what is your resolution in photoshop and at what size are you placing the image? For example, if I have a 300 ppi that is 300x300 pixels in size in photoshop and Place it in InDesign at 300% it's original size it will be only 72 ppi - which isn't great for print reproduction.
Correct format from photoshop?
PDF would be the best to use when saving from photoshop for diagrams - as this can contain vector information but this relies on you using
Vector shapess in photoshop
Vector masks in photoshop
Retaining all text layers as Text and not rasterising them
You can then save the file as PDF and be sure to tick Retain Photoshop Editing Capabilities.
But be warned that if you have black text and black lines, depending on your setup you may force those thin black lines into 4 colour Blacks which might make it difficult for a printing press (litho or flexo etc.) to keep in register.

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