I just got a new laptop with a screen resolution of 1280x800.  When I
use IE to launch a  web page such as google.com the GOOGLE logo
appears choppy.  I get this same problem when I view web pages with
photo albums.  It's like IE is stretching the pictures (horizontally)
to fit my screen.

I've tried going into "display properties> settings> screen
resolution" but none of those options helps.

I also tried "tools> Internet options> advanced> restore defaults" 
inside IE with no luck.

Set the screen resolution to 1280x1024, the picture will look ok.

sorry, please ignore my suggestion. 
Google, how do I delete my comment?

Turn Automatic Image Resizing Off:

Automatic Image Resizing is turned on by default. But you can turn off
 by using the Advanced tab on the Internet Options dialog box.

1.On the Tools menu, click Internet Options. 
2.Click the Advanced tab, and then scroll down to the Multimedia section. 
3.De-Select the "Enable Automatic Image Resizing" check box.

I found the problem!

under display properties> settings tab> advanced> DPI settings>
changed back to normal.

While I thought it was pictures that IE was having a problem with it
was actually certain fonts, like in google's logo.  Thanks for the
help everyone!