After Effects CS3 HD output Pixlated!!

So im trying to build a few tv commercials for my company and i am being told to output to 1920x1080 DVCPro 1080i at 29.97. But everything is coming out pixelated and looking overall terrible. Is there something i am doing wrong? i'm not quite sure on pixel aspect ratios but everything else seems in order. The DVCPro preset actually set my composition to 1280x1080, so i ended up having to choose the preset of hdtv 1080 29.97. That makes it the right size. Here are my settings otherwise.

Preset: HDTV 1080 29.97
Width: 1920
Height: 1080
Pixel Aspect Ratio: Square Pixels
Frame Aspect Ratio: 16:9
Frame Rate: 29.97 FPS

Is this all right? And i have everything rendering to full res as well. I dont know where else to look. Do i need certain pc components to be able to output to HD? Thats the only other thing i can think of..

Thanks in advance!