editing scanned photos

I scan all the covers I rip to my iPod and I would like to get them as clear as perfect as possible. The only thing though is that the dpi is very noticable. How can I clean up the images?

tylerbates30000coverdk1.th.jpg

#449010

Size them down in photoshop and blur as needed. Be sure to create a feathered selection around stuff you don't want blurred.

#449013