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PSD title to FCP- pixelated/looks plain messy

i have been playing with this title for hours today- it seems as if nothing will work to make it appear less pixelated. it is a psd file exported at 720×480. when i bring it into fcp it appears very clear and normal, but as soon as i lay it on the timeline it appears messy and pixelated- is this a result of dv compression or am i doing something wrong?quick help is much appreciated, i am on a very tight deadline!!
thanks!