Opening a client's InDesign file looks pixelated and blurry.

I have InDesign CS4 and I'm having issues with the files that one of my clients sends to me.  The photos look poor quality, very pixelated, even if I change the settings for View > Display Performance > High Quality...Even the text fields look blurry.  I've replaced the graphics by selecting the graphic and going to File > Place, but the graphics still don't look that great.  Is this common when opening someone else's files and are there any ways to easily resolve the problem from my end?

When I print this as a PDF (after "placing" the EPS graphics with the original)  the text and EPS-based graphics look a little better (not suberb, though), but the rasterized images still look dodgy, even though the originals included are "placed" back in the InDesign file again.  This might be adequte if the final, desired medium were a PDF, but I'm taking these graphics and putting them in Flash.
I finally told my client that I needed PSD files instead, as this doesn't seem like it's a straight-forward fix for either her or I.  I am, however, interested in trying out anything else to find resolve in this, since this issue is likely to come up again and not only with me.
Many thanks to all of you for trying to help me find a solution!

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