I just updated my iphone and now all of the photos in my library are blurry. How can I fix this problem?

I have a 3g2 iphone and I just updated the programming to the latest edition. The photos in my photo album all look blurry. These included pics taken from a variety of cameras and scans of photos. They are all in sharp focus on my laptop. and were previously in sharp focus on my 3gs before I updated.

Does anybody know how I can fix this? I assume I am not the only one having t his problem.

I already tried restarting my iphone.

Thanks in advance for any help.