mp4 playing pixellated :(

Hi,

I have embedded a video in my 3-slide project using Captivate 7's 'embed video' feature.

It is a high quality video:

• 1024 x 576
• 2 mins, 57 seconds
• 67 megs

On its own, the mp4 plays crystal clear.

When I publish the Captivate and play it, the images and text are somewhat pixellated.

I am not using the 'compress' feature of the Edit-->Preferences-->Project-->SWF Size and Quality

Any guidance would be greatly appreciated.

thanks!