Interpolate colors when zoomed out or using BITFIT to shrink an image. This makes the picture look better and removes the confusion behavior where a picture might disappear when zoomed out. This change does not apply to Win 95/98/ME experience.
The fix was to set the BLIT stretching mode to HALFCOLOR, instead of COLORONCOLOR. This has a major performance hit when drawing in a zoomed mode, but the improvement in the visual effect is worth the extra time.