Right click on the program monitor and choose > Playback Resolution > Full
See if that works.
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The PS setting appear to be okay. However, do they match the sequence presents you are using? Are you importing the image as a compressed image (Jpg, etc)? Try using a *.psd file directly.
This a a SD image for which there are only 480 lines of resolution. Your posted images are not clear so its hard to tell, but the font type and size may be too small for interlaced material.
There have been other threads on this site before on this issue. However, generally speaking, bolder, large san serif type faces with minimal narrow elements are necessary for readability on a SD project. Color contrast is also a consideration--it appears your have a light color on an black background. The NTSC system can't support the full 0-256 color range that PS does--its more like 16-235--there is a filter in PS that is labeled "broadcast safe colors" or something to that effect.
Thank you KEVIN and SFL. Kevin your trick worked thanks alot. and SFL I went back and re did my PSD and it boosted in quality. Thanks guys!!.