So your pictures are starting out as 600x400, and you're then cropping a bit off one end? What size is the cropped picture before you make it bigger again? It does sound like a proportions issue.
I think what may be happening is that your cropped pictures are ending up a bit wider than your website expects them to be. And if your website is not capable of dealing with such a thing, then you are best off cropping equal amounts from both the height and width of your pictures so they stay proportional.
Alternatively, contact your webmaster and tell them to fix this issue for you.
(The blurring is due to forcing a picture to be larger than it is capable of being, yes, but if you're okay with how it looks then it's nothing to worry about.
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