Photo quality low res in iMovie.  I can't fix it.

No Matter what the quality of my image (jpeg), after I import it (from iPhoto or any other way, for that matter) the photo is low res and I cannot get a crisp image in iMovie 6.0.1.
iMovie 5 did a fine job of reproducing my images. Now, I am at my wits end. I cannot get a project started with iMovie 6 because the images look so horrible.
Is there something I'm missing?

You can use the "screenshot" method, which means just screenshot the picture when only the picture shows. Not any of the white spacing with edit and such on it. Then use the screenshotted picture as your background.

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