Hi,
I think the issue maybe this...
Example:
You have the thumbnails set to create thumbs @ 190w and 120h, keep aspect ratio on, stretch off.
In your articles you have a mix of landscape and portrait images. If you have a portrait image of say 600x800 which you may have resized in the article to 300x225. The news show pro module will create a thumb nail of the full sized image for arguments sake 190x120. When the module renders the thumbnail it will keep the proportional aspect of the thumbnail resulting in a thumb rendered @ 190x143. Which means you are enlarging the low quality thumbnail and getting the blurred images.
The solution would be to stop using 'keep aspect ratio On' and make you images look like crap, use the stretch function which will make you look like an amateur or use a different module that can scale and crop thumbnail images correctly.
Hope that makes some sort of sense.