In the file lib/general.php, find the function ResizeGDImages(). In that function will be the line
if(!(imagejpeg($img_des,$NewLocation))){
The quality ranges from 0 (worst) to 100 (best) To change the quality from the default of 75, change it to
if(!(imagejpeg($img_des,$NewLocation, 100))){
You can also do this with png images however the quality setting adjusts the compression and can be a value from 0 (no compression/best qualtiy) to 9 (highest compression).
if(!( imagepng($img_des,$NewLocation))){

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