sql server reporting services: When i export a report to PDF using the preview, my images are
seriously pixelated. I've updated to the SP2 and the issues still
occur.

Any advice would be greatly appreciated.

Ok, this was not an issue with SSRS. The images that were being
included (External) in the report were coming from an ASP.NET web
application. In the application when i was saving the images to disk
(Image.Save(...)) i was not specifying an imageformat. I am not sure
what the default format is, but from attempting to view the images as
"JPEG" it would appear that it is not "JPEG". I corrected this and now
my images render "CRISP" in the PDF.

-Beau