Probably Project Properties Problem....Not Sure

Hi Everyone,
I'm new to Mac's, Final Cut and of course, Live Type. I'm putting a project together and I'm having a problem with Live Type and the only thing that I can think of is that my settings are not set correctly.
My project in FCE is set to be rendered in 1280x720 HD. My LiveType intro has a Picture background that I brought in. (let nme explain this....the still in the background is actually a Quicktime movie of a still rendered in FCE. So when I brought in my background it was through "Place BackGround Movie)
Ok, so the background is set in place. I did my text with a Spin & Fade effect. I saved it and brought it into FCE project. The Live Type movie played but it was very grainy. In the live type editor it was clear as a bell.
I than realized that maybe its my settings in Live Type. I used the default that was there. So I switched the Presets to DVCPROHD-720p30 figuring that this is why my LiveType clip did not come out clear. I rendered it and saved it and played in LiveType and the quality was superb. I placed this clip in my FCE project and again it plays very grainy picture. Can someone help me with this dilemma? I'm sure its somethig small that I'm missing.
Thank You
Tom

Hey Tom!!!
I know one thing for sure. People complain about this with text all the time. The project looks great in Livetype then when they bring it to FCE the text gets all blurry and loses quality. The same thing may apply to your movie.
One thing you could try is this. Export your FCE project into a Quicktime movie and see if that helps. Usually when you do this all the quality comes back.
Check out these links below. They apply to the text problem but they may help your case....
http://discussions.apple.com/message.jspa?messageID=7198129#7198129
I hope this helps,
-Hooked

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