steps i used for your image..
-print screen, copied image into photoshop, cut out square image (since i couldnt save the raw image)
-sharpen
-bumped up contrast a bit
-tweaked levels just a tad
-resized to 100x100
-saved as png
steps i used for my image..
-copied b&w biohazard image from web into new 500x500 image
-magic wand + similar on white to delete white
-invert fill inside with black to get rid of white edges
-applied layer blending options (see * items below)
*inner glow (black, small)
*outer glow (green, small)
*satin (medium settings from 9o'clock position)
*emboss (hard emboss, small distance)
*pattern overlay (spiderman hex pattern, lowered opacity)
-created new layer under bh logo
-ctrl+ clicked bh in layers, expanded selection by 10px, filled with black, gaussian blur to create shadow
-created layer under this
-used a blood splatter brush to paint a background (green)
-created a layer above this
-ctrl+ clicked the blood splatter, contracted selection by 2, filled with black, reduced opacity
-merged two blood layers, ran wind filter twice, rotated 90^
-added layer above biohazard
-sketched in black bars, rotated, ctrl+clicked original biohazard layer and created layer mask, reduced opacity
-added layer above bars.
-ctrl+ clicked biohazard layer created neon green overlay, reduced opacity until it worked
-added text layer above all other layers
-added blending option of outer glow (black, small, diffused) to make text ledgible
-reduced size to 100x100
-saved as png
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the problem is that the image was created at too high a resolution to begin with. if the image was created at 500x500 and reduced it would look far better.
the simpler an image is... the better it will scale. your image has alot of details on the background as well as alot of very dark shadow areas which when reduced make the biohazard logo seem to fade away. if the whole thing was a bit brighter youy may not have this issue.
if lines are too thin or if you have too much blur in comparison to the solid edges then you may get distortion.
here is a short little animation avatar i put together...
do you see how a few of the edges are blurry? some of the lines were too small at 500x500 so when they downscaled to 100x100 things dont look quite right. sometimes it is almost best to just create the image at 100x100 and go from there. especially when dealing with small details.
sometimes you just need to play around to get things just quite right but i think at least i gave you a good idea what the problem is.
@ what you said about inner emboss... inner emboss typically isnt a problem unless you have it too "soft". if its too soft it acts the same way as blur. if its hard then it scales fairly well.