The problem is when i want to resize HD video from it's original size 1440x1080 50i (16x9) to DV PAL 720x576 (4x3) 50i to the full frame size (without black borders) using crop - the video quality even in preview looks really bad. The whole image gets blurry and kinda "half resolution" looking.
I think it's a bug of media encoder 4.0.1
This is really annoyingg cause we're filming using XDCAM and clients often want to get material in DV PAL. Any solutions?
The same thing done and rendered natively in After Effects looks fine
Try importing the clips into Premiere and resizing them manually in the timeline. Then send those off to Media Encoder. Make sure you select "Maximize Render Quality" from the sequence settings or use "Maximum Render Quality" in your export settings.
There was a similar issue with CS3 when "Scale to Frame Size" was selected on a clip. The resulting video was softer using this feature compared to resizing the clip manually.