We present an implementation of the iterative flux-conserving Lucy-Richardson ( L-R ) deconvolution method of image restoration for maps produced by the Balloon-borne Large Aperture Submillimeter Telescope ( BLAST ) . Compared to the direct Fourier transform method of deconvolution , the L-R operation restores images with better-controlled background noise and increases source detectability . Intermediate iterated images are useful for studying extended diffuse structures , while the later iterations truly enhance point sources to near the designed diffraction limit of the telescope . The L-R method of deconvolution is efficient in resolving compact sources in crowded regions while simultaneously conserving their respective flux densities . We have analyzed its performance and convergence extensively through simulations and cross-correlations of the deconvolved images with available high-resolution maps . We present new science results from two BLAST surveys , in the Galactic regions K3-50 and IC 5146 , further demonstrating the benefits of performing this deconvolution . We have resolved three clumps within a radius of 4 \farcm 5 inside the star-forming molecular cloud containing K3-50 . Combining the well-resolved dust emission map with available multi-wavelength data , we have constrained the Spectral Energy Distributions ( SEDs ) of five clumps to obtain masses ( M ) , bolometric luminosities ( L ) , and dust temperatures ( T ) . The L - M diagram has been used as a diagnostic tool to estimate the evolutionary stages of the clumps . There are close relationships between dust continuum emission and both 21-cm radio continuum and ^ { 12 } CO molecular line emission . The restored extended large scale structures in the Northern Streamer of IC 5146 have a strong spatial correlation with both SCUBA and high resolution extinction images . A dust temperature of 12 K has been obtained for the central filament . We report physical properties of ten compact sources , including six associated protostars , by fitting SEDs to multi-wavelength data . All of these compact sources are still quite cold ( typical temperature below \sim 16 K ) and are above the critical Bonner-Ebert mass . They have associated low-power Young Stellar Objects ( YSOs ) . Further evidence for starless clumps has also been found in the IC 5146 region .