When I'm working in FCP the footage degrades when it's playing (I'm working in a 23.98 Sequence). It pixelates heavy on the computer screen. I've checked the footage with my quicktime player and everythings looks great. How do I get the quality to look better on the computer screen?

Try System Settings > Playback Control > Video Quality > High

Also User Preferences > Render Control > Resolution > 100%

And using the dropdown RT button on the timeline set Playback Video Quality > High

Now I assume you're talking about the quality in the Canvas window. Are you using an external monitor connected to a camera/deck via firewire? That should always give you full video quality and is a much better choice for preview. If this isn't available then you could hook up a second computer monitor through your machine's additional video port (if available) and use the digital cinema desktop feature at highest quality. This should also be better than the canvas window, but not as good as a NTSC external monitor.