Why is the quality SOOO bad?

I am making text in imovie to make a short title intro
I use the built in text tool to render a fade in and out of a title
when i export, i can export in the highest quality possible but the resulting movie still looks EXTREMELY bad
like, all fuzzed and blocky around the text big time
is this normal? what am i doing wrong?

hi, as far as i know i'm setting the codec to "dv"
I assume that dv is a codec :S i know what a codec is but i haven't dealt with dv very much so i don't quite understand what it really is, apart from being uncompressed video. i would normally assume that "uncompressed" means its the highest quality thats possible.
i've fiddled with MP4, sorenson and a few others and to no avail. i've been viewing the movies in iMovie and in QT7. do i have to set settings in QT player?
the movies look like severely compressed files when played.

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