seems to me you have grayscale checked
ok go to the top click image then mode/make sure grayscale is unchecked and RGB is.
as far as the pic,yes when you have small pics and you blow them up they become pixelated,cant change that. My suggestion is searching for bigger pics and slightly changing the size for your sig. Hope this helped
Draft Warmack at 18
It was a bad hire period. How does somebody change a bad culture who is already part of it?