Ok, after some testing with both Handcent and the stock messaging app it appears sprint downsizes the image to 1mb no matter what. You might get further compression when sending to another network. The picture I sent to myself in several different ways was smaller but maintained quality as much as is possible through compression. None of the different ways yielded anything I'd call grainy or bad but it was certainly smaller. My advice, if the image doesn't have to be full resolution send through mms. This has always been a limitation of the networks but only becoming obvious with 1080 screens. If you want the full resolution image sent use email or other methods that have higher file size restrictions. For the friend who got a grainy image the blame is likely AT&T. I know from experience any time I send a picture to a friend on that network I have to lower the max mms size to even allow them to see it half the time. In summary, from Sprint the highest file size you'll be able to send is 1mb and the recipient may get an even smaller file depending on their network.