I tried all of those things and they didnt seem to help. I didnt really solve the problem, but I took the psd file into final cut and animated the sequence instead of animating it in after effects. after applying the flicker filter to that it helped somewhat. the text is jagged vertically and horizontally without the filter. I would really like to know why it does this.
I am also have issues with interlacing, the piece is a documentary with countless footage from many sources, the interviews were shot in HDV and most of the b-roll is from VHS and BETA SP. I am unsure of what my sequence settings should be, should I turn the field dominance off and let compressor take care of the interlacing? If it is set to lower in a nested sequence will have it set to none in the ‘parent’ sequence make a difference?