Colin Ellsmere

I have a baseball cap with a premade texture onto which I'm adding logos. If I place the logo and keep it at its original proportions, it gets stretched horizontally once applied to the object inworld. If I squash it horizontally in photoshop to account for this, the proportions are correct, but the image becomes pixellated, I assume due to the shape change. Is there any way to fix this? Thanks

I have a template for a mesh baseball cap. The shape of the front of the cap is squashed in the texture, to make it 512 x 512... so when I add a logo I have to reduce its size horizontally so that the proportions are correct once applied to the object inworld. The problem is that the logo then looks distorted and pixellated, I assume due to it being stretched back out on the object. I've been using rasterized logos, jpg's or png's. Is there a fix for this? Thanks Colin