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Have you rendered the timeline (press Enter) whenever you see red lines above the clips on your timelines? When the red lines turn green, your timeline playback should look more like your final video.
Also, have you ensured that your photos are no larger than 1000x750 pixels in size?
Welcome to the forum.
Can you give us more detail on how the playback "distorts?" Knowing exactly what you are seeing, can be very useful for remote troubleshooting.
PS - I strongly second Steve's rec. to Scale stills to match your Project, prior to Import.
The rendering helped, but it's still just a little distorted. The images were well above 1000x750, so I scaled them down. It didn't seem to make much a difference though. There is still just a little distortion. Thanks for the advice on rendering, that did take most of the distortion out.
It's kindof hard to explain, but it's like the image gets blurry. It's really noticable in the background. It's also like the images shifts just a bit.
Can you output a segment and post it to YouTube or Vimeo and post a link here so we can see it?