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Stills / Photos edited into video

I was wondering if someone may be able to offer some assistance.

I've been putting some videos together for my company and I'm having problems with the stills. I've added some logos and resized them (smaller) and the degradation in the quality is considerable.

Also, when attempting to use a still to mask a cut etc, the pic becomes blurry.

I've had similar issues in the past and somone stated that the problem may be due to the differing shapes in pixels between the video and photographs.

I selected all the options for 'optimising stills' etc yet the problem persists.

Any pearls?

P.S. I'm using the Premiere CS4, and have access to the whole Master Suite if need be
 
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