Pixelation Problem with Compressor

Not long ago a friend helped me create a showreel in Final Cut Pro, which I then compressed in Compressor for the web. I was able to get the file to a reasonable size and still look decent. I used an mpeg-4 profile, and also resized and cropped the video. The final video was about 20 megs. We just updated the video and although I'm using the same profile I used previously, now the video is appearing very pixelated. An example of how it looks in the preview window, as well as how the final exported video looks is here:
homepage.mac.com/thegoblincleaver/.Public/screengrab.jpg
I have tried turning up the bitrate to insane proportions, fiddled with the pixel shape, etc. My friend is just exporting the master as DV PAL. I'm bringing that video into compressor and even when I change the settings I get a similar pixelated effect.
Here is the profile I'm using if it might help someone advise me:
homepage.mac.com/thegoblincleaver/.Public/webreel.setting
The previous video that was successfully outputed from Compressor is here:
www.brettbunting.com/showreel
Oddly, if I simply export this video from quicktime pro, I dont have this issue. However, Quicktime doesn't really give me all the options that I am using in compressor...
Sorry that was so long-winded, I am really just at a loss for how to continue. Any suggestions would be greatly appreciated.
Thanks,
Brett

Looks to me like we have the same problem.
http://discussions.apple.com/thread.jspa?threadID=1401418&stqc=true
Have you found a solution yet by any chance?

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