Torben,
Thank you for the reply.
ImageMagick has many command-line parameters and one of them is '-quality'. You pass it a number between 1 and 100 where 1 is poorest and 100 is best. It is supposed to default to the detected quality of the original but I suspect that this is not happening.
My suggestion really is in terms of exposing this option through the OpenACS CR API regardless of the image processor used.
Regards
Richard