Help with Contact Pictures

[jeiyuu]

I recently switched over from the Touch to the Diamond, and am having problems with the contact tab in Manilla interface. Everytime I try to add a contact to the favorite, the interface resets and the contact is not added. I know it has something to do with the photo attached to that contact (because it also will not sync those contacts with activesync).

And for those contacts I can add, the picture is very blurry..

Any suggestions on how to remedy this or what specifications should be used to get a good quality pic to a contact so it can be used as a favorite?