Magento – Magento 1.9 thumbnail photo quality

I hope you can help me to resolve an issue I am experiencing with Magento,
When I import product images, magento automatically decreases the size to fit a thumbnail size photo, which dramatically affects the quality of the photo, The thumbnail quality is terrible however the quality of the photo once you click on the item is fantastic.

I am using Magento 1.9, which is quite a recent update so I cannot find the solution for this perticular version,
I have found threads for previous versions like 1.4 which have the solution to them, with the comments positive saying it had fixed the issue, but It does not work for 1.9 (Unless I am doing something terribly wrong!)

I saw another thread with the same issue, but it was closed because the author did not put enough detail,
My question is this,
How do I improve the quality of the thumbnail that Magento automatically decreases?

I have also attached photos to show you my issue.

Hope we can get this resolved!!

Edit: The photos I've uploaded are decreased to fit the thread so the quality looks okay, If you need a link to see the site for yourself let me know!