Text becomes pixally after I hit "apply".

I am LOVIN' iMOVIE HD!
But, I am having trouble with some text. I am trying to create a simple black clip in "Editing" using "Titles" with some red "rights reserved 2006" text in it. Well, it looks fine when I type it out and preview it, but when I hit "Apply", it becomes very pixelated.
Why would that be? What am I doing wrong?
Thanks for helping me explore my new MAC!!
MacBook Pro 2.16/ 2GB RAM   Mac OS X (10.4.7)   My machine rocks....

in addition to cat's excellent advice:
you don't see the final quality of your movie on your computer.
in iM's prefs you find some checkbox about speed & pic quality.... but that is for the app only, not the final, exported movie...
so, make a quick test, share to camera (have you seen that "selected clips only" checkbox in the export dialog…?) and watch tape on telly...
or, for the advanced user, iM offers a "live play through" feature, needs some space on your desk: connect camera to Mac via firewire; connect a TV via analogue to your camera; set checkbox in iM's pref… now, you see, when hitting "play" in iM, your project "live" on a TV in its final, shiny quality....
esp. for your problem this is an excellent feature.... as Cat mentioned, some colors, fonts and sizes are looking... well, "not so good"...

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