Actually, I do pretty well with dogs. Just show them a piece of popcorn and hold it next to your lens - they give the best expressions. Anyway, I get the low-res photos occasionally, especially for doing websites and keynotes. I made the coolest logo for Caked Alaska, and now it looks like trash, since I had to make it a really tiny gif. Can anyone say "redo"?
The worst have to be in a client's powerpoints. They came to me with a bunch of tiny jpegs, horrendous "Jetsons" style clipart, and clipped images with ragged edges out the wazoo. Finally managed to dump some of those...
Thankfully, that's about the full story.