Why does the export quality of my vector image degrade when effects are applied?

Hi guys,
I am unsure as to where I am going wrong...
Basically, I created a patterned background on AI and imported it straight into AE, where I set keyframes for it to rotate. I added fractal noise (got my desired effect).
On separate layers in the same composition I simulated ccParticle World, for which I created a shape layer to link to the texture - I added 'glow' to this. I also added another ccParticle World layer using 'faded sphere' to which I also added 'glow' and altered the opacity etc.
My compostion is HDTV 1080 25, square pixels.
I have Production Premium CS5.
I am trying to export the video as Windows Media: HDTV 1080p 25 HQ.
When I export the video in HD (using Media Encoder) the vector background from AI is slightly grainy and not smooth and the edges are almost pixelated. I have tried exporting the rotating background on its own without any other layers and it looks fine - it is just when I make the other layers visible. It looks perfect in AE too even with the layers visible: it is just when I export the whole composition.
H.264: 1080p & 720p HQ seem to work fine, but I really need the export to be WMV to be compatible with certain programs myself and clients are using.
I have got the continuously rasterize box checked.
Am I missing something?

Yes, I think so to the first one.
No to the second. Please could you explain if its not too much trouble?
How do I render out a lossless movie?
Like I mentioned above, H.264 actually works fine.
Thank you and sorry for my ignorance. I'm still getting to grips with the software.

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