Pictures fade after export using Compression H264

I have pictures with vivid colors. The colors are consistent in Photoshop, Apple Preview, and iPhoto albums. Even when I created a slideshow and set compression-type to Photo JPEG in "Movie Settings", and exporting it to .mov file, the colors are also still consistent.
However for the same pictures when I choose compression-type to H264 and export it to .mov file, the colors fade. Eg. the area that is supposed to be dark becomes light. And the bright area becomes very light or washed out.
By the way, here is my setting:
iPhoto '09 version 8.0.4 (409)
Compression Type: H.264
Frame Rate: current
Key Frames: every 24 frames
Quality: high
Encoding: Best quality
Data Rate: automatic
Optimized for download
Does anyone have similar problem? Did I miss any steps? Please help.

Look in the Inspector and see whether Spatial Conform is set to Fit.
Russ

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