Saving an image from JPEG to PSD won't create or get back any quality. What Chad was suggesting was preventing further degradation. Any compression in the JPEG happened already during the initial capture. I just did a quick test of a folder full of files (mainly to see how text was affected). Saved the screen capture in JPEG (lossy) and PNG (non-lossy) format. Placed in InDesign; Scaled at 100%, 70%, and 50%. Used High Quality PDF settings. Result: All look fine, but can definitely see artifacts around text in JPEG. Tried again with no compression--still saw artifacts in JPEG. As you mentioned, both looked fine in Photoshop at 100% view, but when I zoomed in, I could see the artifacts in the JPEG. Essentially, Photoshop was making the JPEG look better. My conclusion: Don't save as JPEG when the capturing. Use PNG or TIFF (if TIFF, use only LZW compression). Does it make sense? Not really. One would assume what one see in Photoshop would be what one sees in ID and into Acrobat. However, since that is not the case, the workflow needs to be adjusted. (I realize this does not help your current problem, but will help with in the future.)
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