Rendering causes Livetype assets to degrade

When I import an .ipr file into FCP, it's got an orange bar, but still plays back in real time and looks perfect. When I render it, it gets jagged and looks horrible. I tried exporting a Quicktime file from Livetype and importing that into FCP. Exact same situation. Why would rendering degrade the image?

This did NOT solve the problem, but thanks.
From what I've been reading in myriad other posts is that the DV codec itself is simply of less quality than the animation codec that Livetype created the graphic in, so when you lay down the Livetype over your video, it looks good at first because it's referencing the orignal file, but when you render it (assuming of course that you're working on a DV timeline) FCP adds DV compression to the graphic and the resulting jaggies are a result of that.
Firstly, does that make sense to you guys? It seems to to me.
Secondly, if you're supposed to be able to "round trip" between these programs and, I can only assume, a vast number of FCP users are working with DV, why would this be set up as such? That is to say why wouldn't Livetype let you create in DV so you can see what you're working with?
I don't know what to do. Is it possible to get Livetype to look good in FCP DV?

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