I thought I was imagining things, until I found a Flare compiled PDF from before I updated.
Here's a "before" and "after" screenshot (4 to 4.2) of the same Flare PDF, blown up to 120%:

Both are put into the topic with no scaling, though I'm guessing Flare's PDF compiler somehow opens and scales and re-saves the image. Here's a more pronounced example (this time from a PNG in the Flare topic to a PDF made by Flare 4.2):

This is pretty darn yucky. I'm going to submit it as a bug/wishlist, but please: If anyone knows a work-around, or a way to tweak how Flare manipulates images during PDF compiling, let me know!
I shoot in PNGs for a reason... so I won't have to deal with the artifacts that JPGs create. I wish there were a quality slider-- or just someway to tell Flare not to fiddle with the images so much.
Edit: Submitted Bug
-d

