Hi (from a very desperate flip )

I'm trying to do a very basic animation using two images imported from photoshop 7 into premiere 6.5. One image is just a straight psd (the background) and the overlayed image is a psd with a work path because i want most of it to be transparent when overlayed(and will move over the background). However as soon as i have 2 or more video layers and then render the quality becomes very poor. When i look at a section of the time line that doesn't have anything overlayed and hasn't been rendered it looks crystal clear in premieres monitor window. I've made an avi of the time line and it still looks poor (pixelated, poor colour, flickering).

The premiere project is set up as 720x576 and each frame in photoshop is the same. ( i presume that the phooshop image is set up as 720 pixels x 520 pixels? The resoulution i set at 150?)

Any help on this would be greatly appreciated. Hopefully i made sense!

Flip