Rexx,
I don't have the answers for you.

The following is probably *not* your problem, but it's a possibility. When the image looks wierd to you, are you viewing it at 100%? I've seen what appears to be some very strange transformations when viewing at something other than 100%! I have no idea why this is, but if I make a print, it doesn't show up distorted, even though it does on the monitor. Also, if I change the view to 100%, it looks much different (not distorted). This is something that I've only noticed a couple of times, but it came to mind when I read your post.
Now if someone will give the *real* answer, I'd be interested too.
Ed