Problem with Blurry Footage

I Edited a music video that is graphic-intensive. Half the graphics were done in motion (v4.0.3), and the other half was done in photoshop (CS5).
Both were inputted into an animation sequence. The export from photoshop was an animation codec, and the effects from motion were exported in the native motion codec.
The original footage was on mini-DV and looked crisp and clear, all in focus. The final looks extremely blurry.
The filters I used in motion were nothing more than a heavy saturated look with a tilt-shift type of effect, blurring out part of the screen, but now the entire footage looks extremely blurry.
I have tried to export the effects from motion as an animation codec, then drop into the animation timeline, but everything still looks blurry. I have tried other types of sequences as well (422, DV, uncompressed, ...)
I tried to add the heavy saturation in Final Cut with the tilt-shift effect; the end product is still blurry. Any ideas how to up-res this footage, or do anything else to make it clear?
Final output will be web only, at standard def, and one screening at Burbank Film Fest on DVD.
FCP v7.0.3
OS 10.5.8
In sequence settings, I do have the video processing set to render in high precision with motion filtering set to "best."
I have been having weird problems with 7.0.3, and tried all the normal fixes. I will try to wipe all my many many plug-ins next.
Thanks for any help!

"Papa" Sean

What are your sequence settings? Did you render?