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[email protected] imahumdinger57@gmail.com is offline
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Default Insert image does not retain Image quality

I've worked extensively with this issue. It helps if you use Paste Special and select a bitmap than if you do a direct paste. I've also found that inserting an object (PDF) results in terrible quality, but if you use the snip tool in accessories, the quality is much better. If you have Adobe Pro, you also have the option of using the snapshot (camera) tool. Start with a large on-screen magnification if you are using either the snip tool or snapshot tool; the number of pixels makes a huge difference.

Finally, right click on the image to get the options box and select "Sharpen" if you can. This is not an option will all types of images, but it can help. It takes some experimentation to get the best image.
Hope this is helpful!