Hey Amy,
This may be due to the codec you are using on your timeline.
Try changing your timeline settings codec to something like Proress and see if export will work without pixelation.
I had this problem when exporting XDCAM 35MB footage on an XDCAM codec timeline - The final film produced a random mosaic of square pixel. When I changed the timeline codec to proress it exported smoothly.
Interested to know if it worked for you.
Errol X. Lazare
EXL Films
http://www.exlfilms.com