In order to have a smooth sharp crisp image / photos display in your Flash movie you could use the forceSmoothing property of movieclips.

You must set this property to true only after the image is loaded.

Here's an example:

createEmptyMovieClip("imageMC", 0);
var loadListener:Object = new Object();
var mcLoader:MovieClipLoader = new MovieClipLoader();
mcLoader.addListener(loadListener);
mcLoader.loadClip(imageURL, imageMC);
loadListener.onLoadInit = function () {
    imageMC.forceSmoothing = true;
}