Horrible video output quality with Premiere Pro CS4 + Adobe Media Encoder

I am trying to make some changes to a DV format file, and output as the same DV format. When the video is brought into Premiere, it looks crisp in the left-hand video box. But, when playing it on the right window and when encoding it, it comes out as a mess with substantial compression artifacts.
What confuses me is, I have experimented with a lot of codecs--even uncompressed AVI. There is no change in the video resolution--source is 720x480, as is output. I am keeping all the pixel aspect ratios the same as the source footage.
What is creating this distortion? I have no scaling of the video whatsoever in the sequence...
Is there some compression box I'm not seeing here?
I've attached a screenshot of a still from the video. As you can see, substantial artifacting around the lettering, making the text unreadable.

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    Message du 03/06/09 16:08
    De : "Jim Simon"
    A : "JONES Peter"
    Copie à :
    Objet : Premiere Pro and Adobe Media Encoder running slow
    For AVCHD you MUST have FAST disks.
    AVCHD actually has a lower data date than DV. You need lots of CPU muscle, but disk speed is really not a factor specific to AVCHD. Anything that works for DV will work just as well for AVCHD (and HDV as well).
    >

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