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Why is my sony vegas pro 9 such bad quality???

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I just downloaded sony vegas pro 9 and I imported a video clip but it was such bad quality! So I tried a different clip of a different file and it still was REALLY bad! I then changed the quality to BEST and still its absolutely rubbish! It doesnt happen with my Sony vegas 8, just the pro 9. Did it happen to you too? It happens with pictures too :(!!! PLEASE HEEELP.