FULL_DIM = FULL_SD_DIMto
FULL_DIM = FULL_HD_DIMI think that fixes the problem as well. Make sure you stop and restart the server after making the change.
The photo thing isn't your imagination. Now that you're sucked in, you might want to try the 2.0 beta version. It fixes that problem (I think). If you don't want to try it, you can also edit common.py in the server directory and changeFULL_DIM = FULL_SD_DIMtoFULL_DIM = FULL_HD_DIMI think that fixes the problem as well. Make sure you stop and restart the server after making the change.
I assume you installed the Python Imaging Library (PIL) package (you must have or changing that line wouldn't have made any difference). It may be that it doesn't do a great job scaling images and that the box could do a better job on its own. One thing to try would be to try it without PIL. You don't say what OS your server is running, but on Windows you can easily try it without PIL by renaming the PIL directory in C:\Python26\Lib\site-packages to something else (like xPIL) and restarting the server. That will take PIL's scaling out of the equation, but it will make navigation painfully slow.
I'd be interested to hear if it makes a noticeable difference. If it does make a difference, I could change it so that PIL is used to scale the thumbnails, but the box is used to scale the fullscreen images.