Blurry Still Images In Premiere Pro

[King_Diamond]

Hello everyone,

I tried doing searches to seek help for my problem but I still can't figure it out.

I am trying to create a motion menu for my project using picture in picture. One of the "in pictures" is made of stills.

This video of stills look blurry/grainy, like an interlaced effect. I resized the stills to fit my screen and exported the video with Premiere. The video looks fine but when I resize it to scale 25%, the same blurry effect is noticed. So I resized the stills again to match the "scale" size instead of scaling to 25%. Once again the result was better in terms of bluriness even though the quality doesn't seem so good.

Anyway, when I add transitions between stills, the same blurry effect results but only during the transition effect. I exported the video and played it on TV but the blurry effect during transitions is still annoying.

Can anyone suggest any help please?