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I'm not sure what feldon33 means by "bump", but thought I'd let you know that I have the identical same machine (3.03 GHz 24" w/ GeForce 8800 and 4GB) and notice the same thing that you do - beautifully smooth fish and a badly pixellated background. I'm hoping that the next version with the animated background will remedy this.
As far as the crashing when saving prefs goes, I've never had that or any other problem. Have you tried trashing the pref file
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