I have noticed that on Digg, avatars come out resized a lot smoother than with the PHP script I'm using (it's one of those basic image resizing scripts, if you Google PHP image resize it's something as simple as that). I am positive that Digg uses PHP for the backend because it has been mentioned numerous times in different articles, plus there are openings for PHP developers on Digg's Jobs page. I have no idea how their images come out so much cleaner, but here is a comparison between Digg's image resizing and mine:
30px by 30px
Digg: 
Me: 
16px by 16px
Digg: 
Me: 
If anybody has any idea about anti-aliasing with image resizing please let me know, as it's been driving me crazy!