Thanks for the help Michael. I’m running 6.0.6. I created a new project, created a Pro Res 422 (HQ) timeline, imported the .psd file and dropped it into the timeline. It still is jagged.
When i first imported the psd, in the FCP browser, it listed the XDCAM EX 720p24 for the “compressor”. I changed that to the Pro Res setting and after exporting and viewing it the lower section of the icon is still jagged.