I’m guessing that the text you created in LiveType is then imported onto a FCP interlaced timeline (also, make sure your FCP render settings were set to Full Quality, as you may have accidentally rendered the text in draft quality). If so, there isn’t much to worry about, as this is normal, because interlaced content cannot be viewed accurately on a desktop monitor. That is why a pro-quality broadcast monitor is so important to a workflow. Even a standard TV does a better job displaying interlaced material than your desktop display. Anyway, to get rid of the quality issues you speak of, when compressing, if doing so for the web or other small format, make sure to de-interlace the content. However, you do not want to do this if you are not scaling down the video or are targeting TVs with MPEG-2 encoding at native size. If you are encoding for DVD, and the primary playback will be with a computer, then you should deinterlace the content, but quality will still suffer if your source is only D1.