Background image is blurry I'm using a low resolution texture (128x64) from an old game as a background image to help me model but it gets blurry (or aliased I guess) which ruins everything. 

I heard that one might need to increase the size of texture but if I do that then texture will get messed up and I want to keep all pixels of it in the same place without "JPGing" it.

Is it absolutely impossible to get sharp background image? Zooming doesn't help either. My version is 2.79
As workaround, you could get away with Import Image as Plane Addon which creates a simple plane that you can use as reference. It actually also creates a texture shader for which you can use interpolation as closest in the shader texture node.



If you still want to be able to position it in front and change the alpha not as convenient as the background image but, you can add transparent and a mix shader. And disable selection mode to let you select object located behind it.