"See I think your texture is just like the black and white text. It's the same sort of blocky texture only it's color. Jpg cannot do that type of image"

I think your wrong here. I have used jpgs a lot without any problems at all. But, I am aware of it's limitations and know the no no's. It also makes a big difference witch application is used for creating the jpgs.

I have now made some renders and I think they support my opinion on that my problem has nothing to do with it being a jpg image.

It's the sphere with the Shaded white smoke that is the problem. If someone have any ideas on how I best create the water foam without getting this problem i would greatfully recive such suggestions. ;)