Does anyone know if there is a good way to clean up low-quality images? Like this picture -



It's small and pixelated and yucky, and I'd like to enlarge it and clean it up. Or I'd settle for just cleaning it up. But I don't know of any way to fix that pixelated look. I mean, I can blur it a little, but blurry isn't really that much better that pixelated. Any suggestions?

ETA: Forgot to mention originally, I use Photoshop CS.