Sony SxS footage looks terrible after edited on FCP

We have been using the Sony EX1 shooting on Hi Def and edit in HD (1080i60) on FCP 6.05. The raw footage looks fine in the viewer until we trow it into the time line (seq 720x486 uncompressed) then it gets blurry. we edit it, export it and it looks really crappy, like a VHS quality and it looses most of its Chroma. Then when we create a DVD on DVD studio pro it look like Sh--t. We tried even using filters to sharpen the picture and other to add chroma to compensate for the loss. All the other footage on the project and the graphics looks great except the SxS footage. Does anyone know what is the best setting to get the an output to look somewhat decent or should I give up on Sony SxS? Any suggestions
Flavio

>The raw footage looks fine in the viewer until we trow it into the time line (seq 720x486
>uncompressed) then it gets blurry.

Ah. That's coz you're working in unlimited RT. The footage would be around a quarter rez.

Also, you should edit in an HD sequence, render out to ProRes.



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