PSE 11 images loose quality when dragging since updating to Yosemite

I make composite images by placing 2 or more images onto a white background, which has always worked well, until I upgraded to the Yosemite OS. Hitherto I have dragged my JPEG image onto the background then dragged a corner handle to reduce the size of the resulting layer. The quality of the layer image had always remained the same after dragging but now, as soon as I drag the image onto the background, the image degrades and becomes pixilated and blocky.
Any suggestions please?
Jackie
27" iMac mid 2011 - 3.4GHz Intel Core i7 - 16GB ram OS X 10.10.1 & PSE 11.0 (20130123.m.34069) downloaded from App Store

In case anyone is thinking about this -
It seems this is a symptom of the trackpad problem. Although I only use a few tools, PSE11 is working fine since I disconnected the trackpad. Hopefully the issue will be sorted out soon.
Thanks to anyone who has spent any time on this.
Jackie

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