Why is the images I load into my radio buttons fuzzy

I built a Radio button using a xml with selector nodes to create custom selected states for the radio button. When I place the button on the screen the image if "fuzzy". If I increase the image size and then fix the button size to the original size the image is clear. But this leads to an out of memory exception when I compile since I have 3 Radio groups with 2 to 3 buttons each in them. I duplicated this effect in a sample project. Attached is a screen shot of this. as well as zip file of my sample project.

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