I'm getting something like this too.
It's weird because when I open the webpage/image locally it looks fine, it's only when I view it over the web it looks distorted.
click some of these pics to see what I mean:
http://www.coolmanfamily.com:8080/sf/pictures.html
Or look at this html, which is also distorted the same way (also fine locally):
http://www.coolmanfamily.com:8080/sf/conold.html
Any help would be very much appreciated!