Good concept. Can't add much about the compression that hasn't already been said.
Lighting is good. The capsules are overall a little soft as 2.8 is a bit much for this shot. Keeping the 100 ISO you might want to try f8-f11 and a tripod.
I saw this on Flickr and it looks much better there, no compression artifacts at all. Like Yo_Spiff said, 58k is a small file size, you can go to 200k in member challenges. I think if there were no compression artifacts this would have scored a lot higher, it's a cool photo.
Tons of JPEG compression showing here. Red is also a bad color for compression artifacts. Does not hide it well. Your 58k file size shows you had plenty of additional overhead to avoid the artifacts. Always use the least compression you can and still slip in under the challenge limit.
The composition, lighting, and colors are wonderful, but you lost a lot of image quality somewhere. Definitely some compression issues or something going on.
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