Graphic automatically compressed and distorted when published

Hey, notice the home button as it appears from the reflection. As the mc is properly at place and the animation stops, another mc starts over it. However, the first mc appears to be distorted or compressed and the 2nd mc is just fine. both are using same source of graphics.

I just don’t understand. Somehow, when i publish the movie, the graphic becomes compressed and distorted. But when checked within fla, everything is fine, only when published. The original graphic is good and uncompressed and Jpeg quality is at 80 for publish settings. I just don’t get it. Can anyone explain please? thanks.