images are stretched ot

[smallpigpig]

I don't know exactly what you had done in the previous version, but currently, in the case of the Cosmo Cricket image, for example, you're asking Zencart to resize an image with dimensions of 900 X 246 to 150 X 150 - you're going to get some warpage.

Much better to resize the category images manualy to the proper dimensions or install the Image Handler 2 mod.

That's the thing. Everything in terms of image specs is the same, and I do have IH 2 install in both 1.3.7 and now 1.3.9.