a. In the main interface, tab on the "Settings" button at the top left

b. From the Settings Menu (Figure 1), select "Photo Quality"

c. In the "Photo Quality" Menu (Figure 2) choose the desired image resolution.
    Note: Low: 320x240 pixels, Medium:800x600 pixels, High:1024x768 pixels and Full Camera Resolution

d. Select the JPG compression quality from 0.1 (lowest) to 1.0 (highest)

e. Tab on the "Home" button at the top right to return to the main interface
 

Figure 1: Settings Menu                                                       Figure 2: Photo Quality Menu