JPEG (.jpg) HD snapshots look horrible

As reported in: http://forum.videolan.org/viewtopic.php?f=14&t=78143

If one plays HD video with VLC and takes snapshot with JPEG compression, output file looks horrible. Macro blocks everywhere, small filesize so the compression level is set incorrectly. Tested with VLC 1.1.0 under Win32.

Sample snapshot: http://img412.imageshack.us/img412/9131/vlcsnap2010062421h46m20.jpg

Sample file (Annemarie_Warnkross_20100622_Anh__nger_-kaputt-taff-FD.ts) that can be used to replicate this: http://rs879.rapidshare.com/files/401805961/Annemarie_Warnkross_20100622_Anh__nger-kaputt-_taff-FD.ts

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