I am working with a project with Corel VideoStudio pro x2 that involves on-screen graphics on the videos. I use a transparent .png file that I put in the Overlay Track #1.
Original file:

Whenever I edit the video or the image, I get distortion around Music Television area. Somehow it looks like the writing Music Television wants to move / increase in size. When I play the project in the preview window, it looks okay.
After saving to a DVD file like MPEG2 file 720/560 it looks like this:

I used the same project on my laptop which has a better graphic card, Corel VideoStudio pro x4 and I get the same results.
The image is so pixelated and curvy.
I used a different video editing software though, the image looks much smoother:

Any ideas?
Regards,
Leszek
