QGraphicsView setRenderHints() problem

I am writing an application for Windows using Qt-4.4.3

Inside the main window I have a QGraphicsView object, all it displays is an image. However I intend to add drag & drop features later on, this is why I decided to go with QGraphicsView class. I call the fitInView() method inside the resizeEvent() method because it was suggested in the documentation. I also make a call to setRenderHints(QPainter::SmoothPixmapTransform) when the QGraphicsView object is initialized. However when the user resizes QGraphicsView, the image that it displays is scaled properly but it is not displayed smoothly.

I searched on a few forums about this problem but I could not find anything helpful.
Am I missing something or is this a known issue?