The blist is autoscaled, but the images are loaded according to their size, so what fits a qvga will be only a quarter in vga.
This means that you need to change the size of the image prior to loading it to the list.
You can use img.ZoomImage with the zoom factor defined by screenscaley.
This is what I do in my Family tree to show thumbnails on the list:
Code:
imfn = AppPath & "\jpg\" & list.Item(i)& ".jpg"
If FileExist(imfn) Then
image2.image = imfn
ImgSize() = img.ImageSize(image2.Image)
factor = Max(imgsize.hy/320,imgsize.wx/240)
item.SetImageFromExisting(img.ZoomImage(image2.Image,8*ScreenScaleY/factor))
item.ImageTop = 1
End If