To address your overly bright areas of the image, you may find that excluding the brightness/contrast and levels, and doing it all in Curves may be a better choice. In Brightness/Contrast, you really only have the choice of more or less. If you lighten the image, you're bound to clip some of the more subtle detail in the highlights. Similarly, with Levels, you only really have control over the lightest, darkest and middle range pixels - so if you move the highlight slider inwards, you're again going to clip away some detail in the highlights. With Curves, you can choose to brighten only certain ranges of tones - and if you watch to make sure the white point doesn't get moved (or that the curve doesn't touch a side), you can retain quite a bit of the detail in that area, while still brightening the light parts. Sometimes, I'll even make multiple curves adjustment layers with masks, so that different areas can have different amounts of adjustment. As for the uglification of the pixels on that logo - it appears the client stole it from his/her own website to put it into print. I see this all the time. They let their "original designer" keep the image, and just have their website copy (low resolution, compressed). They'd want to get the original from whoever has it. OR, you can tell them you'll fix it - recreate it, and then make more money?
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