IE 7 Renders Image Badly

I got surprised when I saw IE 7 is rendering some image so badly, whereas Firefox is rendering it perfectly. No more to say, this picture will tell you all.

Updated
Deb read this post and came with the solution. He asked to use

img { -ms-interpolation-mode:bicubic; }

in CSS. I used this and now IE 7 renders the images properly. He treats this as non standard MS proprietary CSS. About the problem he explains: if the image is being stretched a bit, or is bigger than it is supposed to be IE does not scale it properly. Many thanks to him for sharing this bit of knowledge. If you are searching for any image rendering problem in IE can use this bit of CSS. Many thanks to Deb.

Deb is a freelancer who designs XHTML/CSS. You can see his portfolio and hire him for all your markup related jobs.