How to scale down video without pixelation?
 

I have video HD 960x720. I want to scale it down about 75% so I can fit it over footage of a TV set. When I do that it gets pixleated. any suggestions? Im using FCP studio 2.

Are you viewing on an external monitor? Chances are your stuff will look just fine when rendered. Don't trust the FCP canvas, especially if you're working in an Unlimited RT timeline. Force a render and see if the situation improves...

Although you might be rendering down to the correct size and aspect ratio make note of the codec too.

Do you get a green render bar on top when you do this effect? When it is green you can play real time but quality is low unless you render. Unlike the red bar where you can't play back, but at least quality is high when looking at a frame.
I hate that green render bar, seeing such low quality doesn't help me.