I have a minislideshow set up on my site. When I use the sizes 160X160, the images appear good but when I change the sizes to 360X360, the same images appear blurred. The actual image size set on the album is 640X640.

What could be the reason?

The minislideshow uses the thumbnail unless specified.
Please try the manual version instead of the included(and outdated) version here.
And for your convenience, I have a really handy embed tool here.

My newest upcoming version of G2Bridge includes the embed tool, and G2Image as well as autotags(actually autotag driven) to easily include G2 content anywhere you want.

-s

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FlashYourWeb and Your Gallery with the E2 XML Media Player for Gallery2 - http://www.flashyourweb.com