1)before flashing netarchys kernel take a few pics make sure cam is set to 8mp check the size of pics.
2) flash netarchy kernel take a few pics and check size should still be the size of 8mp pics.
For those of you already on netarchys kernel and stuck with 3mp you can flash back to htc kernel do the first step then flash back to netarchy.
Here's link to htc kernel(got link from baked snack thread so credit to hero_over for the upload)
http://www.4shared.com/file/E32Yqfnp/HTCKernel.html