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Jpeg image in Word doc. becomes blurred when converted to PDF

hi, the attached word doc with jpeg company logo blurs when i convert it to pdf, any suggestions as to how i can convert without seeing this quality degradation?  i've attached a copy of the logo and word doc.  thanks


Doc1.doc
LH-Header.jpg
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Anil
Flag of United Kingdom of Great Britain and Northern Ireland image

What are yo using for the conversion to pdf. Normally in options you can set the quality for jpg conversion inside the pdf.

A>
You must resize the image outside of WORD using an image editor (ie Photoshop) and then Insert Picture WITHOUT RESIZING.

If you let WORD resize the image, it becomes pixelated when converted to PDF.
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t38

ASKER

akajohn - i've tried both primopdf and the pdf creator function in word 2007 - what options are you referring to.

sjklein42 - i don't have access to photoshop, could you suggest a more accessible alternative if there is one please?
If you don't have photoshop or want to install a large free app like GIMP, you can resize jpegs online as well using an online tool like: http://www.webresizer.com/resizer/
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downloading trial of photoshop so i'll give that a shot and will look at the options as mentioned by akajohn, thanks to you both for your prompt response and suggestions, i'll report back asap.  
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Anil
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actually that does look fine, i'm not in work now but will check that setting tomorrow and get back to you.  thanks
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Thanks for all your suggestions but in the end it was simply a case of checking 'publish online' option...