Screen-captured movies are pixelated

I am capturing video from my screen as I navigate within a software application (we are making training videos). The Quicktime movie that is produced at the end of the capture is flawless, but when I bring it into Final Cut Express, the final movie is pixelated and un-readable. I am using an application called iShowU to do the capture and have the video set at MAX and 40 frames/sec.
Has anyone had success capturing video from the screen and incorporating that video into Final Cut Express? I am also having similar trouble with images exported from PowerPoint, even when they are exported at 1200DPI PNG.
Thanks for any help!
Michael

If you intend to output on video, like tape or DVD, then the way to do the screen capture is to rent a scan converter and record in a digital video medium, either on tape or directly to computer in a correct standard video format.
If you're going to deliver on the web then you can use computer resolution to scan your material. You would however then need to work with a resolution independent editing application that can work in different codecs that are suitable for this, like Final Cut Pro.
If you are only doing simple editing and trimming you might also be able to use the QuickTime Pro player to trim and assemble screen captures.

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