Blurry Images working with Spirit Theme

I had this issue with Fixer, so I switched to Spirit, Same issue.. My header image looks great in the upfront customize page, but when I save an switch the view front-end it is blurry.

I have tried deleting the image, flushing cache, fit to element, IMG 100%, added another image element and used same image. everything I have tried has not worked.

Here is a video grab showing the issue. I know that others have had similar issues, Is this a bug?

https://dl.dropboxusercontent.com/u/7188407/Issues_With_Blurry_Image.swf

Support access is already granted..

please advise. I am on my last string :slight_frown: