Why Does Photo Image Resolution Get Downgraded In CS3?

Question

Hi,
I admit from the outset that I am a Photoshop dunce, and try to run before I can walk. That said, I can get simple things done but cannot figuire out why this is happening or what to do.
I am creating a CD box image in CS3 using a pre-created Action to make the box image that was obtained elsewhere. The problem is that when I bring in a very high quality photo (231KB), it downgrades in resolution. When it first comes in, it is gigantic and of high quality. However, when I resize it, it becomes of poor quality. I think I apply the transform when this happens?
Any advice would be appreciated. Thank you.
Asoka

Answer 1

Thank you very much for your feedback and help.
Actually, you're right about the image. I myself had a big question mark about the "high resolution image" when I went off to find the file size for this forum post, only to discover that it was less than even 1MB. Not exactly the highest resolution after all!
I got it from iStockphoto, and it was the small version of the images that I chose, i.e. for web use primarily. But I found that I was able to do a product box, even a website banner, without any problem at all. Also, when I bring it into Photoshop, it seems to be a mile wide on a 32 inch monitor but still shows pretty high definition. That is why I thought it was high resolution.
What I can't understand is that I created a product box with another Action with the same images and that came out just fine. It's when I try this CD box that the image quality seems to mysteriously downgrade.
You can see the product box here:
http://www.surgeyourtradingsuccess.com/surgebm/
and as you see, the result is actually quite good (and these are the same images photos, i.e. under 1MB file size).
However, when I do the CD case, this is what I get:
http://www.surgeyourtradingsuccess.com/Case.htm
You are correct that one should not really be working with Actions until one is experienced in the basic product. In my defense, I didn't create the Actions but rather bought them as part of a graphics product: in other words, they were pre-created so that all I have to do is add the appropriate photos, backgrounds and text and then hit the buttons. It worked fine for the product box graphic and also for this CD box graphic, EXCEPT that the latter result is low resolution.
Any thoughts on what is happening?
Asoka