Hi, thanks for the reply. The sequence is 640×480 with PAR 1 and both playback and pause settings for the timeline preview window are at full.
Here are the premiere title properties:
Title Type: Still
Data Size: 3 KB
Title Size: 640 x 480
Pixel Depth: 32
Pixel Aspect Ratio: 1.0
The Photoshop file was just a small image using the standard 72 pixels/inch resolution.
If I create the title at twice the resolution of the the sequence, then it looks just as good as the Photoshop file… but still has that visible extra blur when half overlapping another layer.