Poor quality video when viewing on canvas - screens captured by Camtasia

I'm creating avi files of Excel screen shots and activities on a PC with Camtasia, moving them to FCP5, and converting them to QuickTime movies. I've tried lots of settings at both ends of the process. The clips look great if played on QT pl;ayer or other players and not bad when played in the FCP viewer. They lose a lot of resolution when I move them to the timeline, render them, and view on the canvas. Any idea what settings I should use to get these clips looking really good? Thanks very much.
Ernie Horan

They lose a lot of resolution...
they have to ...
iMovie is for video editing, delivery is in NTSC/PAL, so max. supported res is 720x480...
video means also: iMovie uses internally "dv" as videocodec (as on miniDV tapes...)… what codec is inside the .avi you're producing on your PC? .. as you probably know, avi (in the Apple world: mov) is just a container, some say "wrapper".. can contain many formats&codecs, which look good in playback, but lose quality when processed in iM.. as said: stay with dv...
if camtasia doesn't support dv, try a less compressing codec (mpeg4?)... try to come close to the video specs as possible...
last word about quality:
"video" means also, your Mac can only "emulate" the final pic quality, video has 30fps, is interlaced etc.... playout to tape/create dvd/use iM's live-playout feature to judge delivery quality....

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ATR,
Thank you for helping me out.
To answer your questions:
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