Camtasia video footage turns blurry in Premiere

I'm trying to edit together a video tutorial of some footage captured using Camtasia. From Camtasia the footage was exported .mov files at 640x480 in 10fps. When I import this footage into Premiere the source footage looks crisp and clear in the source panel but once I bring the clip into the timeline the footage appears blurry and out of focus in the program panel. I setup up a custom setting when I created the project to match the 640x480 and 10fps specs but that didn't resolve anything. Any ideas. FYI I'm using CS3 version 3.2.

The link in this ARTICLE might offer some useful info.
Here's hoping,
Hunt

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