Burvey...thanks for all your help, but after 2 days of working on this i stumbled by accident on the solution..i still dont know why it works, but it does (if you can explain it to me, please do).
if i call either "Create object" or "spawn object" from an event that compares vales (x=y...current level=5...etc) then the spawned sprites have jagged edges...but if i call the same "Create object" or "spawn object" from a time-related event (eg "compare time") then the spawned sprites are as smooth as the original...flawless. why the time-event makes a difference i dont know. is there a better solution, i dont know. i would love to post the capx, but dont know how to do that either. hope this helps, and saves someone else days of wasted development time and frustration. now back to the cool stuff i hope i can do with C2.