Yes, PM's default graphics display is a low-rez version. You can change it to high rez under Preferences, but this will slow the computer down. Also, the EPS cannot be directly displayed in PM, it shows only a TIF preview, the specifications of which you set (1-bit, 8-bits etc) when you create the EPS. Even if you set it at 8-bit, it will still display fuzzy, unless you activate the high-rez graphics display feature as well. I wouldn't worry too much about the colour change of the preview, as it will still print OK (on a postscript printer). Don't attempt to use EPS for importing into Word - it won't accept that format. Use TIF instead - avoid JPGs at all cost for any printed material.