This is a common question and there are several answers:
1. First, the Final Cut Pro Canvas has a low quality playback engine that will not show the original quality of the clip. (Why? On slower machines, you can play layers, title overlays, real time filters etc. a lot better.) So, the Canvas will always show titles and graphics more pixelated and lower quality video than it will be on final output. Here’s why. Render a title and play it on an NTSC or PAL monitor (TV) before you panic!
2. NTSC is not a perfect format- and TVs are low resolution and fuzzy. If you’re a graphic artist used to creating crisp, clean pixel perfect graphics in Illustrator or Flash on your expensive LCD display, you’re in for a big surprise- NTSC (stands for Never The Same Color) is a challenging medium.
3. DV codecs are not kind to titles or graphics. If your title edges still look nasty, try going to a bigger or bolder font, different background, put a drop shadow or slight glow on your titles. Keep checking on your external NTSC or PAL monitor if your project is slated for TV delivery. Watch TV and see what graphic styles look good on your TV set- and model those.
4. If your project is NOT going to broadcast or DVD, there are ways to preserve the perfection of your titles and graphics. Follow the steps listed here.
DV Enlightenment
After Effects PowerStart
Final Cut Pro Foundations 
Motion PowerStart
LiveType PowerStart
Bogen Tripods
Miller Tripods
SteadyTracker
Steady Stick
Skycrane Jr.
Tiffen Filters
Wide angle lenses
FireStore FS-4 Direct to Edit
Edirol Video Mixers
Reflecmedia 
Serious Magic
DVcreator Light Kits
Photoflex Reflectors
LitePanels LED lights
Lowel Ego light
BeachTek XLR Adapters
RODE Mics
Sennheiser Mics
Apple Computers
G-RAID Hard drives
Lacie Hard drives
Digital Speakers
Video Processor / DV Converter
Nattress Film Effects FCP Plugin
SonicFire Pro
Sorenson Squeeze
Primera DVD Duplicator
Matters of Light & Depth
Editing Techniques with FCP
APTS : DVD Studio Pro 4
APTS: FCP Advanced FX Book
FCP Visual QuickPro Guide
Well done you guys.
One of the big reasons fo buying a mac (after the ads), was that i ‘knew’ the quality of video would be right up there.
Up untill now that hasnt been the case with graphics and i just couldnt understand why. The Lynda.com FCP tutorial didnt solve the problem, but you guys, in this article have revealed the ‘good graphics holy grail’.
Beautifully simple, exactly what i needed to get amazing graphics and teh best possible quality export.
Thank you
Thanks for your comments James, there are plenty more secrets on this:
http://www.dvcreators.net/final-cut-pro-foundations/
Also revise the Field Dominance of both your LiveType project (if it’s LiveType you are talking about), the title clip format in FCP timeline, and the sequence itself to make sure it matches the one of your TARGETTED OUTPUT (NTSC TV, progressive, computer monitor/web etc). If you want to publish to the internet, maybe you will want the Field Dominance to None. In some projects “progressive” projects, I found it to be the solution and I got correct title resolution. Hope this could help. -Dan