How to stop images from blurring on imovie?

I just got a macbook. I haven't used iMovie since I was a kid. I'm trying to make a video for a Christmas present for my family but whenever I drag a picture from the giant list of imported pictures and into the actual movie, it turns blurry when I play it. When I put it on pause and click on the picture, it's in focus. Sorry if this makes no sense. I'm new to all these Apple products. Thanks!

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Since you are "... trying to make a video ",

I presume you are trying to produce a DVD that will display the (still?) images, via a DVD player, on a TV screen. If so, there is no way that a normal (SD) DVD will reproduce the same high resolution that (for example) a good .jpg image will produce on your MacBook display.

I expect that your MacBook will display images at a resolution of 1280x800, but the specification for the resolution of a "standard definition" DVD is only 720x480. This means that the encoding process will necessarily "blur" some of the fine detail in your original images.

Of course, my "presumption" may not have correctly identified the difficulty that you are experiencing.

Anyhow, unless you get a better answer / solution to your problem (here) fairly quickly, I recommend that you make enquiries through a specialist forum that deals with queries regarding iMovie / Mac equipment.

You may find the link below to be a useful starting point:

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