Hi Troy Lawrence,
We do not resize or scale the image during upload. You could check the HTML of the uploaded image to see that it should be added with its actual size without any parameters that could affect the quality.
the Telerik team
Do you want to have your say when we set our development plans?
Do you want to know when a feature you care about is added or when a bug fixed?
Telerik Public Issue Tracking
system and vote to affect the priority of the items.