Deal is, in both normal and featured posts the image must cover the whole area allotted to it, and that area has a fixed width and height; so lower and/or narrower images are stretched, higher and/or wider ones are cropped. To display a complete, uncropped and undistorted featured image, you need to create it in specific dimensions: ... See here for dimensions >
http://wpbtips.wordpress.com/2010/04/26/featured-postsimages-in-inuit-types/

I am trying out Inuit Types and notice that when the picture of the white deer is placed as the Featured Image, it shows up in the right spot, but the deer's face is much much wider than in the original, which shows a thin little face.

How can I avoid this kind of thing from happening? Does one have to fiddle around a lot to get images right in the Featured Picture in Inuit Types?

~L