Moving Graphics Quality Loss

Hi,
I'm using FCE (4.0.1) and I'm encountering some problems with moving graphics loosing there original quality.
I originally imported a 300dpi RGB .psd into FCE and placed a 3D Zoom on each layer now during playback the layers are no longer crisp while moving, even appearing to break apart (the image fragments) to originally solve this I applied the de-interlace filter which seemed to correct it but I am now seeing a very pronounced drop in the image quality.
So...Can anyone help?
Cheers

FWIW, deinterlacing throws out half of the vertical resolution so you should expect the quality to drop considerably. Also keep in mind that when you place ANY media in the Timeline, it will (upon rendering) conform to the Sequence settings in FCE. So if yous Sequence settings have a lower resolution than the original media, you will see a decrease in perceived quality. Also note that DPI really has no meaning in video; it is a measure of the print world.
Instead of applying the 3D Zoom to each layer, why not apply it to the nested PSD?
-DH

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