I would not call PhotoZoom bad software, simply not the program that works for what you want. It is still the best program I know of that can increase the dpi (and/or size) of an image with the least amout of pixelation or distortion.
Unfortunately with the small images you are working with and the detail required it may not be the best choice.
It works very well to enlarge a photograph without causing pixelation.
I made a test using the current download of version 2.0 of PhotoZoom.
Working with an antialiased image (attachment on the left). I increased the pixels per inch to 800 and then saved as a 24bit png. As you can see from the attachment on the right there was some antialiasing added (which would be excellent in a photo).
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