(adsbygoogle = window.adsbygoogle || []).push({}); Here is a step by step tutorial on how to fix rough edges on pictures in Photoshop. I believe that it works on most of the photoshop versions and if you are interested I'm using CC 2014.

Step 1
Find a picture that needs its edges fixed. Here is an example of a Super Mario icon I found online.
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You can see the rough edges and I want that fixed and make it clean.

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Step 2
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You can see the "thumbnail" of the Mario icon. You want to click "cmd" on Mac or "ctrl" on Window so you get a dotted line around the image as you can see on the picture.

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Step 3
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Now what you want to do is create a layer mask. How you do that is while the dotted line is around the image you want to fix, you want to create the layer mask by clicking the "Japan" flag as you can see on the picture. After you have clicked it it will appear a black white image beside the original image, now on the the next step

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Step 4
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Now, go over to Filter > Blur > Gaussian Blur and click on it.
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This mini screen should pop up and you want to make the Radius to 4.0 Pixels and the edges of the picture should become really blury, then click OK

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Step 5
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After you are done with the Gaussian Blur go over to Image > Adjustments > Levels
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After you have clicked on the Levels there should be opened a new mini screen. This is more complicated, but I will try to explain it as good as I can. The value of the three main arrows you can move depends on the picture. Usually the value of the one to the right (color white) usually is about 200 and the one to the left (color black) is somewhere around 150+. The middle one is following the movement of the left one, so no worries about that one.
If it did not turn out good just move them to a different value and see if they will look better.

(Some images is around (white one) 200 and (black one) 180.)

Here are before and after
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If you want me to maybe write it a bit more clear please quote me and I will try to explain it better, I know I'm not too good at explaining thing, but I hope the pictures help!

Thanks man!
Not sure if this removes bluriness but if you press control and click the thumbnail, and then contract the selection by 1/2px, it usually gives a soft edge

Might not work for big designs, but for buttons and logos it does the trick for me anyway.

Great tutorial

Found it working on a lot of things, recommend that they have a alpha background or else it will not work.

But, it is correct the edges will be more soft and the blur goes away, depending in the value you put on the Levels

Thanks Man