[Brandon Santiago] “live type settings: CCIR 601 NTSC 40:27
720×480 “
Is this a typo? The CCIR 601 preset should be 720 x 486. The dimensions you state (720 x 480) are for DV-NTSC. If you mix them up, FCP will resize the text causing softness.
Sorry if this isn’t your problem. Trust me, Live Type should be creating sharp looking text.