Methods and systems for processing a low resolution image via a low resolution error diffusion algorithm. A low resolution binary output pixel can be generated utilizing a general error diffusion algorithm. The low-resolution binary output pixel can be converted to a predetermined number of interpolated sub-pixel values and each interpolated sub-pixel values can be compared with a threshold in order to generate a scaled slow-scan output pixel utilizing the low resolution error diffusion algorithm. The low resolution error diffusion algorithm includes a highlight threshold adjustment module that adjusts level in order to prevent the scaled slow-scan output pixel from firing around the low resolution binary output pixel within a highlight region. A slow scan error with respect to the scaled slow-scan output pixel can be distributed and stored via error diffusion filter coefficients within an error buffer without additional memory.