Product photos are fuzzy and Admin settings do not work in Store Settings

We are having issues spuratically with photo settings working in Store Settings, and photo quality.

http://s17661.p20.sites.pressdns.com/store/products/striker-ice-womens-climate-bib/

This product and all products should size and crop photos to 300x300 and look crisp. No matter what size we put in the store settings, the size does not change and the quality is terrible. If you click on for the light box, the image looks great, as it should.

What can we do. This is basic stuff for ecommerce sites.

We have tons of complaints from customer that Marketpress is not doing anything that it says it does compared to other ecommerce.