That is a pretty high resolution and at 100% size is a tiny image. Based on the pint photo dimensions you posted above that will be 1564/3200= 0.48 in x 1029/3200=0.32 in as shown on your first Indesing screenshot. As Cari suggested, those might be scanned photos. I did a quick search and it seems it is recommended for scanning 35mm film. Do you know if those photos were scanned from 35mm film? When you insert the photo in a 4.37 in x 2.87 in frame (as shown in your last screenshot) you are scaling up the image and that's the reason it looks pixelated. We'll wait for Cari to give you a recommendation on how to deal with these photos. You can try View/Display Performance/High Quality Display but I doubt it'll make much of a difference.
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