A case of over saturation

My good friend Maciej pointed out some weird artifacts on a previous post so I took a look into what is going on. The first shot here was (over) saturated in Picasa3 and posted in a previous post. I tried processing the RAW file in PS-CS2 to see if I got the same results. The CS2 version came out much better. This is to be expected as I saturated the RAW file in the CS2 version, but saturated the JPEG in the Picasa3 version.