It looks to me like there is doubling of the words "ONE CENT". Of course that very well could be an artifact of the scan, but...
Here is a crappy pic of the coin I am talking about.... I have scans, but they are really bad as well.
That coin doesn't look like a proof -- there appears to luster in the fields and not mirrored like one would expect from a proof IHC.
The camera flash takes away from the fields, but is there anything else that makes it look... not proof.
The weak strike, but as stated above, I've seen some weakly struck proof IHCs before, so that in and of itself doesn't bother me. Can you take the coin out of the holder and take a closeup of the rims/edge? On proofs, it will be square and well-defined. Not so much so on a business strike.
Because the photo seal indicates a "premium quality" coin, and a grade is simply a grade. Please take a look here for an explanation of the photo seal: http://www.indiancent.com/photseal.html Hope this helps...Mike