I only synced facebook for like 2 mins before i unsynced it, but they were fine when i did. It just synced all my friends instead of those just in my contacts so i unsynced them.
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...because it's using Facebooks thumbnail images for contacts and then the image is being blown up during a phone call distorting the image.
I'm assuming you're talking about the image used for contacts when a phone call comes in/goes out correct? Or do you mean that they are blurry when viewing from the contact list?