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doofoo, there is the problem. whenever you downscale from 1080p/720p regardless of your source, there will be a significant degradation in quality. my suggestion to you would be to re-encode your videos at 480p, such as 800x600
or 640x360. if you output the 720p videos at the original resolution, and use my settings, the higher up you go using those settings is going to cause the video to lose quality. i suggest you re-encode the videos at a smaller resolution such as 800x600 or 640x360, and then use magix vegas 15 to output the videos in full screen mode as per the info i listed at the end of the tutorial. you will still get the full screen movies just without the letterboxing, aka the 'black bars' at the top and bottom. try this and post back and see if it helps any.
-Kitsune1982
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