My product image looks very good but somehow magento is making my thumbnails looking pretty bad. How can I fix this problem?(Setting?/Code?) Thank you!
There are few function exit in magento.
setQuality() for improve the quality of image.
Also Need to use
resize() of $this->helper('catalog/image') properly at your code.
See more details at http://astrio.net/blog/images-resize-in-magento/