CS5 Image Blurry on Placement Resize

I've searvhed through and can't seem to get the fix.  When I place an image (jpg) into my Indesign doc it looks sharp.  However, when I resize the image (smaller) it looses its clarity.  The image looks great in Photoshop.  I've been stuck on this for hours.  Anyone know how to fix this? I need some help down here!!

There is the cause. Do you know what ppi is for?
If this PDF is to be printed, you are actually using the wrong export function.

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