I'm using Adobe Premiere Pro 1.5,
And I have this problem that when I add an .JPG in the video track (same size as the video) it looks all blurry like in the attached pic.
But when i click the "Sequence 1" screen once, it becomes sharp again.. like the lower pic, thats good, cause the quality was set to high.
On the moment I export the movie on MS DV AVI format it becomes all blurry again.. (in any format tho)
First, Premiere doesn't really like JPEG files. You're better off with an uncompressed picture, like BMP or TIFF.
Second, JPEG is a lossy compression method that looks okay for standard photographs, but very blocky on computer graphics.
Third, DV is a compressed video format that uses initial frames (I-frames) that are essentially JPEG still pictures. When you start with a JPEG picture, Premiere expands it to a full resolution frame. When it exports it to DV, it gets recompressed. The best results you can get would be by starting with an uncompressed picture. That way it's only compressed once, in the output video.