Problems adding logo or custom type to video clips - the result is fuzzy

Greetings! I'm new to iMovie (using '11) and am attempting to add my logo to video clips before uploading them to VIMEO. I have watched two tutorials, so I know the mechanics. In Photoshop I put my logo on a transparent background, added my web address below it with the type tool, sized it to 175x85px @ 72ppi, and used PS's Save for Web option, saving it as a PNG file to my desktop. I dragged my black logo onto a video clip in iMovie, but what I see is a badly out-of-focus logo over the video. I've tried multiple times and get the same result. So how do I make it look crisp? I've got a screen shot if you need to see it. Please Help! thanks, tom

tom5757 wrote:
... sized it to 175x85px @ 72ppi, ... but what I see is a badly out-of-focus logo over the video. ...
no such thing as dot-per-inch in video - video has same res on any sized screen.
your Project has 1920x1080 pixel ... try this res.

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