I bought a 640x640 pixels image from a site and when i dragged it on my game and made it a bit smaller some weird square pixels appeared on the edges ? Will it also look like this in the iphone ?
Just make sure e images are 72dpi? That might be causing a problem. But you know what they say, a picture is a thousand words, post a screenshot of what you're seeing
GS is is not good at resizing, resize with OS X preview or Photoshop etc. But your problem could be that your image does not have a good alpha mask (transparency).
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Load it in preview and select adjust size, if it is not set to 72dpi change it to that, then save and drag back into your project.
If i make it big it looks clean and sharp , if i make it smaller these funny squary things appear .