By default, PowerPoint 2007 compresses images put into a presentation while saving. While this saves file size, it can result in a loss of quality which you may not always want. To disable compres'sion, go to the Office button> Save As. Goto Tools > Compress Pictures. Click on the Options button. Uncheck the box against "Automatically perform basic compression on Save". You can also change the density (pixels per inch) of the images saved. Keep in mind this option will be set only for the current presentation which means you have to do this over again when you work on andther presentation.

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