Photo JPEg QT files - look horrible

Hello,

I have been given QTs with Photo JPEg compression, 1280 x 720, 30 fps.

The image quality is horrible, not pixilated but almost fuzzy. Adding effects to this is not working.

Bring into FCP, clip and sequence setting match. Exported h264 to test as this is going on web and DVD. and of course still fuzzy.

Why would someone deliver photo jpeg files? Isn't it best to receive 8 bit uncompressed?

Can I convert this in mpeg streamclip into something workable (compressor is not working right now). I have looked on forum before posting do not have kona card.

Thanks,
RR

MacBook Pro / Intel Core 2 Duo / 2.2 GHz /
2 GB memory / 800 MHz / FCP 6.0