I've captured several minutes of video at 320 x 240 @ 29.9 fps in the AVI format. When I go to render a project using these files (at various res. settings including 320 x 240) they all appear washed out, pixelated, and flat. I'm sure I'll see some generational loss but this is extreme. I only have one Hard Drive, a 20GB 7200rpm model. Could this be the cause? Could it be an outdated AVI Codec, if so where can I get a new one? Please help.

Any suggestions? Thanks.