Problem with images

I have loaded a image into the the .fla file, I’ve added some simple alpha animations to it,for some reason, when I run the file, the quality of the image is horrible…I’ve tried the image in .png and .jpg formats, same result. Is there any way I can keep the quality of hte image and animating it?

I’ve thought about dynamically loading the image, but this image is for my preloader, so I’m just wondering if there is another way to do this?

thanks