That is a T-Mobile USA issue, it has been always the case with unlocked phones on T-Mobile USA network, even though you set a certain limit on the pictures it gets re-sized to unbearable quality. Unfortunately there is not a whole lot you can do about it. Even using the N900 was the same issue with me, calling their tech support is not worth the time. But now I have switched and been happy to get the 3.5G coverage and no issue with MMS.