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The only way you can avoid pixelation is to work with a high quality image at its original file size - Taking a high res picture but making it smaller and then blowing it up bigger will just end up with a quality hit no matter what you do. You'll have to take the performance ding on your laptop and work with a giant file size instead of making your file tiny.
Just Make it as Smart object before any use and then use the copy to maintain original image quality......You can Easyly Scal Down or up with out loosing any details Njoy...!