Blurry stills in Premier Pro 2.0

[cobra jet]

I recently noticed that my still pictures are a bit blurry in my timeline during play back. If I press stop on top of one of the pictures it clears up some and if I press play again it gets blurry once more. Even when the timeline is stopped, the pictures are still not as clear as the same picture is in the source window within Premiere. None of the Field Option or Interpret Footage changes I have made seem to make it any better. This occurs with pictures I have shot with my digital camera, as well as pictures shot with my 35mm that I have scanned. Is there any default settings I need to make to maintain my still picture quality?
Thanks

Project timeline settings:
29.7 f/s
720 X 480
D1/DV NTSC 16:9 (1.2)

[edDV]

The computer monitor previews are only intended for approximation. A quality preview requires an external monitor fed from the IEEE-1394 port. A DV transcoder or DV camcorder decodes DV to analog to feed a TV monitor.

Pro Premiere Suites usually do monitoring off the SDI I/O card.

See monitoring in Premiere documentation.