When rendered, still images appear in low quality

Hello everyone.
I'm facing an interesting dilemna with Adobe Premiere Elements 8. It usually works fine for me, and with time I have learned to fix most of the details that usually bother unexperienced users such as me.
What happens is that I'm importing still images (JPEG) to my video, and when rendered they're final quality appears to be so low. I mean, you can see the pixels very large, square-like, you know... as if I had a small image and had it stretched out a lot, but that was not the case at all.
I never had this problem before, and I can't recall anything different on my part in this new video.
Any ideas as to how to fix this?
Thanks everyone.

Hi everybody,
It is a bit late to join this discussion but for vacation reasons I didn't follow the PE-Forum for a while.
 I think I have a comparable problem like fmrees: Since a couple of days the resolution of the Preview in PE8 is rather poor. Unfortunately I can't say exactly when it startet. Maybe it begun after I rendered the project.
After having read this issue I deleted the rendered files, looked at the preview: still the same. Re-rendering didn't improve the result.
The difference between the problem of fmrees and mine is: I do not use at all still images. The only video sources are AVI-Files from MiniDV.
I looked at other PE-projects I didn't touch for several week: I have the same problem! So probably it is something in the PE- or project-settings, but I have no idea what it could be (I am rather a newbee in PE).
My Hard-/Software:
Intel(R) Core(TM) i7 CPU 860 @ 2.80GHz 2.80 Hz
RAM 8.00 GB
OS
Windows 7 Home Premium
Video:
NVIDIA GeForce GTX 260
Philips 244E
Audio:
AVerMedia H789 PCI-E DVB-T
Realtek High Definition Audio
Premiere Elements V8.0

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