Why doe imovie all of a sudden pixelate my transitions?

I've been using imovie HD for years with no problems. All of a sudden, when I preview the transitions, I notice that it pixelates the transition preview and the real thing. I have repaired permissions and deleted the preference file.
Ironically, I'm also getting program chokes with LiveType when I try to apply an effect. The only thing that has changed lately, is that I did a macosx software update recently.
Thanks,
Bob

Hi Bob - I'm sorry I have no solution to your transition issue, but I am curious as to how LiveType fits into your iMovie work-flow?

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