iTunes had to compress them, apparently a lot, so they would fit on the space available. Compression loses details making them look sligtly blurry, matter of fact, if their really blurry, iTunes probably only loaded thumbnails images instead of the full pictures, because, it told you there wasn't enough space, and you told it to do it anyway. However, that said, I have a 64gb iPad 1 with 22gb of music, several gigabytes of movies and around 800 pictures and they display very well, with no blurriness at all. And I have almost 6gb left. How much space did you have available before you tried to download the pictures? Where the photos in RAW only format? Not jpg format. All RAW format pictures include a small low resolution jpg file, that may be what your seeing. The iPad can't display some RAW format files so it displays the small jpg file instead. If so convert the RAW to JPG and try again. Uncheck the Sync photos button and sync your iPad, this will erase all of the pictures currently on the iPad, then check the Sync Photos button and select the jpg photos you want. and Sync again, you should have photos now on the iPad.
