Yep. Use PNGs for screenshots and any other images with text or hard edges.
It might be more obvious with the relevant area blown up: http://img8.imageshack.us/img8/8127/jpegcrap.png
Even better, compare/contrast the corresponding area from hax0r's screenshot, which was posted as PNG: original, JPEG.
Basically, the JPEG version looks like it's been lightly sandblasted right around the text.
Ow! That hurts to look at!
Will be interesting to wait when the official one`s "comes out" ,
and see what they can do/perform..