To make sure that I'm on the same page as you, let me restate: you created an image in PS, and did a Save_As .PSD, which was sized to your Project's Frame Size, and correct PAR. This was Imported into PrPro as Footage (Layers Flattened), and placed onto the Timeline. When you Export>Movie (DV?), the PSD looks bad, both soft and pixelated. When you place a Title over it, it improves, but not by much. Is this correct?
The reason that I am asking, is that I have not encountered such, and the above (except for the Title) is my workflow. Things look quite good, when one considers that the output is to video and not to print.
Good luck, and let me know if I got the situation and workflow correct.
Hard to say without knowing your project settings, but I must say the results there would be what I would call "typical" for a DV size project, especially if those figures aren't rendered full-size in the frame (i.e. they take up only part of the screen).
having said that, have a look at your PAR (pixel aspect ratio) for the project, you might be working in non-square pixels but you may have fed it square pixels causing PP to do some not-so-good scaling.
Just a thought.