Pixelated Transitions

Hi,

When exporting a timeline from Premiere Pro CS6 the cross dissolve transitions between and to images created in Photoshop CS6 look very pixelated. I exported through Media Encorder, same. I checked the Use Maximum Render Quality, same. I cbecked Render at Maximum Depth, same. I used Dip to Black transitions, same.

Any suggestions, work arounds, anything so the transitions look smooth?

Thank you. And happy holidays!