I am working with files that are animated (e.g. Simpsons, etc) and when I encode I am getting really bad 'pixelation' (square, fuzzy blocks). The pictures are not clear by any stretch of the imagination.

I encode in SVCD/NTSC format...4:3 NTSC, all that stuff. Is there a setting I am missing? The source files pixelate as well...but not too bad. Is there a way I can clean this up and smooth it out and make it sharper?

Thanks for any help!