iMovie '11 serious image quality loss

Hi all,

My first post here...

I've been noticing a serious image quality loss in iMovie with still images. At first I thought it happened during export so I checked the compression settings etc. but it didn't change anything about the quality. Afterwards I noticed that iMovie already decreases image quality after importing the still images to the project.

I found a YouTube movie online that shows the exact same issue: http://www.youtube.com/watch?v=9mXjT-Ua3dc

Any suggestions how and if this can be fixed?