4.0 ruined my wallpapers!

Before the iOS4 update, I had a whole bunch of high quality wallpapers on my iPhone 3GS.

Now with the update, I go to change them, and they're all showing as EXTREMELY pixelated and low quality.

What happened?

ETA: Alright then! I fixed it myself. So I'll just edit this, in case anyone else has this problem, and is looking for a solution.
Go to Devices>Your iphone>Photos>Sync.

That is all folks. Just resync your photos folder, and it will fix the quality issue.

Take notice if you ever do a screenshot on an older supported device. iOS 4 bumps the resolution to that of the iPhone 4's Retina display. Also take note that the stock wallpapers are brand new.