IMovie 09 - Will titles downgrade 1080i quality?

I think I now understand the quality issues with v8.0.1/v8.0.2 relating to FX (other than cross dissolves and fades to black/white) downgrading the quality of 1080i clips to "Large" but could someone tell me if the inclusion of a Title, either overlaying an video image or on a plain black background, would also cause a 1080i image to be downgraded across the whole movie?
I am about to start my first edit in iMovie 09 and want to know what to expect, if titles will cause a problem then I'll create physical titles and shoot them with the camera rather than create them in the program. By the way the camera is a Panasonic TM300 (AVCHD).

Titles over video are fine.
But for some insane reason Apple decided that plain backgrounds were to be included in the "bad" FX category. So I grab some video and dial EVERYTHING down to create black video.
Of course the correct thing is to use photoshop to create some colored mattes and import into iphoto.

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