JPEG in FCP 7 blurry

Several weeks ago I posted that I brought a jpeg into a DV timeline and it looked very blurry and sort. The jpeg was a chart I made in Photoshop, basically background blue and white lettering. When I brought it into FCP 7 it went terribly soft and blurry. The suggestion I had from Shane was to change the jpeg to a png, which I did. No change at all. Any idea what I am doing wrong? The first time I brought it in it was 300dpi, but I also reduced it to 72 dpi in both jpeg and png ... no change. Thanks for any suggestions.
Stan

FCP 7
MacPro
OS X 10.6.8
2.16 GHz Intel Core 2 Duo
3 GB Memory
Over 3TB harddrive space

Make sure the dimensions of your picture fit, or nearly fit, the dimensions of your sequence. So, a PAL widescreen DV sequence would be 1024 x 576.

Also, render your picture, and make sure to look at it on a broadcast monitor, or at least a television, before freaking out too much. DV looks pretty horrible on computers.

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