Illustrator CS4 Text & Shape logo is pixelated when placing as smart object in PS

I made a Logo in Illustrator CS4 containing text & shape. The lines are crisp and clear at 100% & 200%+. I save my file as an ai and also another version as outlined. But when I copy & paste it into Photoshop CS4 as a smart object it becomes pixelated when I zoom in more than 100%. Is there a way to fix this?
When I use to do this in CS3 it worked fine, but now it doesn't work. The Photoshop file, placed as a smart object is the one on the left at 200%. You can already tell the pixels are distorted. The one on the right side is Illustrator file at 800% and is still crisp & clean. I've saved as eps, tiff, jpeg from illustrator and when opening it in photoshop and zooming in it's pixelated....and yes AA is turned on in Illustrator and nothing happens when I view as overprint either.
First, I'd like the logo in jpeg crisp and clear when zoomed in.
Second, I'd like to resolve the smart object issue in PS. I know a smart object will hold it's quality no matter the resize of the image in PS, but I can't get it to work... Can someone offer any suggestions

What is the ppi of the Photoshop file?
And for what it's worth, any raster image will never be as crisp and clear as a vector image, smart object or otherwise. Photoshop shows raster previews even if the actual object is vector. If you zoom in on any raster iamge, you'll see pixelation.

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