Screensaver Pictures Folder and Photos difference?

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In System Preferences/Desktop & Screen Saver/Screen Saver tab, in the left sidebar if the Pictures Folder icon is selected, the pictures tend to be pixalated, but using the Photos icon they are not.
Why?
I have helped several people in the Leopard forum by telling them to switch the screen saver icon to fix their pictures for the screen saver (and received several stars), but I recently helped someone and they replied with their thanks and asked why does this make a difference.
I don’t know much about iPhoto so I decided to ask the experts here. I searched this forum for “screen saver“ and “picture folder,“ but could not find anything about this difference.
Any explanations would be appreciated, but the correct explanation would be especially appreciated.

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If you click on the Pictures Folder then you get to see all the pics in that folder. That will include the iPhoto Thumbnails and these will display
pixalated,
as they are tiny.
When you point to iPhoto or an Album therein, you just get the properly sized versions of the pics.
Regards
TD

November 30, -0001

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