Album Art (Blurry) on Mobile Devices

You don't mention what image format you have saved these to. Most players can handle either png or jpg (baseline) without issues. Progressive jog often has problems. And images over 4MB cannot fit, but your 1MB limit should not be a problem.

If your picture formats are within these factors, the blurry results will more likely be caused by the player. For Android devices like Samsung there are plenty of alternative players you can use that would be ideal besides the native player. Foobar Mobile is currently free. There are other paid ones as well.