Compressor 3.5 Watermark Rendering Bad

Hi All,
Just upgraded to Final Cut Studio 3 (Compressor 3.5) and when I render Watermarks that looked fine in Compressor 3, they are now almost totally 'washed out' or faded. Specifically, the watermarks were made in Photoshop (PSD) and the Opacity was set to at 10% and 100% (different text has a different Opacity). The 100% Opacity watermarks now look like they are 50% and the 10% watermarks cannot be seen at all. If I render the watermark in Compressor 3.0 they look fine.
Secondly, in the Preview window in Compressor 3.5, the Watermarks look fine. It's only after the render, when I open the Quicktime file that the watermarks look washed out. I don't have a "what you see is what you get" situation with 3.5. Again, with 3.0 everything looks great (Preview and rendered Quicktime), it's only with Compressor 3.5 that this happens.
Any suggestions?

What codec are you using and how long it the video? Quickcluster is a waste of time if you going to ProRes. If the video duration is short Quickclusters won't kick in with all cores running.
There nothing wrong with Compressor 4... Going to compressor 4 won't solve your problem.

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