Blurry text with Pinnacle Studio 14 HD Ultimate

[cutman21]

When I use the playback mode(within Pinnacle Studio 14), the video becomes choppy, blurry and the text bleeds and is blurry too. Usually when I first load and run a video, it's fine, but later it gets fuzzy. Appears the more I play it, the worse it gets. It started with the text, but now it's the video too.

I have the small dell optiplex 745. It's a duo core with 2 intel (R) Q965/Q963 express chipset family. I'm running to the dvi I think, it's the white slot, oppose to the blue(vga) slot. I have a dvi adapter on my tv cable, and it's running to the white dvi slot, you can see this in the pic above.
My monitor's(tv) screen resolution is set to 1024x768 and the color quality:32bit(highest).

Please, this has been a problem for a long time. Please someone help me.