Updated Illustrator smart object in Photoshop views blurry

Hi all,
This is probably an insultingly simple query but:
I've created a map in Illustrator, opened this as a smart object in Photoshop and dragged it in as layer in a PSD.
When needing to make changes to the map, I've double clicked the smart object icon on the layer list which has opened the Illustator EPS of the map in Illustrator. Made changes, saved and closed - all is going according to plan up until this point.
When I return to my PSD the smart object has updated alright but it looks all pixilated and blurry. The file hasn't been moved since I originally placed the smart object and nothing I do seems to give me a crisp updated smart object.
My only option, which is a pain, is to open the original illustrator EPS - make changes - save and start again in Photoshop.
There must be something I'm doing wrong.
Any help appreciated!

Thanks for your help, but still no joy I'm afraid.
Here are the screenshots doing it the 'save as' way:

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