A system and method for displaying images of internal anatomy includes animage processing deviceconfigured to provide high resolution images of the surgical field from lowresolution scans during theprocedure. The image processing device digitally manipulates a previously-obtained high resolutionbaseline image to produce many representative images based on permutations ofmovement of thebaseline image. During the procedure a representative image is selected havingan acceptable degree ofcorrelation to the new low resolution image. The selected representative imageand the new image aremerged to provide a higher resolution image of the surgical field. The imageprocessing device is alsoconfigured to provide interactive movement of the displayed image based onmovement of the imagingdevice, and to permit placement of annotations on the displayed image tofacilitate communicationbetween the radiology technician and the surgeon.