Thanks useful information: 
I've recently been trying my hand at some panoramas, however I don't seem to be able to reduce them without losing image quality and becoming a horrible mess.
Here is an example:
http://s000.tinyupload.com/index.php...92666932461097
No matter what combination of settings I use I end up with equally bad results.
The full size image is perfectly sharp and is about 15000x5000.
What am I doing wrong?!
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