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Are you doing your editing on a PSD or a JPG? If you do multiple edits and saves on a JPG you will increase the number of artefacts each time, as Photoshop re-compresses the JPG each time you save it.
My usual procedure is:
1. Edit the PSD.
2. Resize the PSD.
3. Save as JPG.
4. Undo the resize on the PSD.
5. Save the PSD.
If I want to do more editing, I'll do it on the PSD, resize it and do a Save As... to replace the JPG.
but that's just me...
PS: The full-size version of your image looks fine on my monitor - no lines or anything in the background.
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Religion: It's all fun and games until someone gets burned at the stake...
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