[Timothy Anderson] ” field set to Progressive”
What is the sequence setting and the clips, are they progressive. What is the frame rate?
Since you have a lot of specs left out here are my general guidelines. “etc…” is useless if you want help, type in what etc is.
Export out of FCP as self contained with current settings. Take that movie into Compressor and add a m2v preset. Make sure the frame rate and field dominence is the same as the source. So if the source is Upper first the m2v needs to be upper first. Do not de-interlace if the footage is interlaced.
Change the encoding method to CBR, it will take a lot less time and it will look better if you are able to use such a high bitrate.
If that does do the trick, try send to Compressor (or Export with Compressor in FCP6) Do a short 2 minute test with the graphics. Use the same compressor settings. This may give you a better result but it takes longer to get there,