Yikes! Alright, everyone let's calm down a little here.Your post suggested that my advice was irrelevant, or at least less useful, because it doesn't have its roots in graphic design.
Let's address the "off-topic" part - where in the OP does he even mention graphic design? He asked why his graphics looked blocky; I gave him an answer that works for me. That's entirely ON-topic.
And again, nowhere in the OP is filesize mentioned as a concern, nor is printing. 600 dpi is an entirely workable format.
Again, we're not talking about graphic design, we're talking about making saved images less blocky. Go back to my reply to the OP (where I suggested using PNG instead of JPG).
Firstly, yes this is about Graphics Design (from my perspective), although I did not specify such a thing in my posts, so I don't fault anyone for any confusion there, although an argument about it seems rather unproductive.
Secondly, after trying 600 Pixels/Inch and 150 Pixels/Inch with PNG, I did not find any difference as the pictures displayed in InDesign. And this whole subject is a little redundant now as I am no longer making a pixel-perfect recreation of the PDF I was sent.
I am now taking a different approach to this project and just using InDesign to re-create the Newsletter as it's displayed in the PDF I received, but I will not do so with quite so much precision as researching how to edit a PDF file has taken up a significant chunk of the time I could have spent actually working.
I appreciate everyone's input on this subject, but for now I'm just going to continue re-creating the Newsletter as best I can using InDesign.