Q: Why does my Text look blurry sometimes in Sony Vegas?
Answer: There are two main things to look at if your Text looks Blurry. You must first check your Project Property settings and make sure they match the Text Media settings. Another thing to understand is the effect of Aliasing which is mostly caused by bad colour combinations.
First thing to check is which Resolution you have set your Project Properties to.
The lower your resolution, the more difficult it can be to get nice sharp Text.
Also make sure that in the actual Text Window, the Frame Size (shown in top left corner) matches your Project Properties.
Example: If your Project is set to 1920x1080, but your Text Window is set to 640x360, the Text will be crap. This error can occur if you start a Project with the wrong Project Property Settings and then change it AFTER you have added all your Text Media. If this has happened, change the Frame Size to match.
The main thing besides resolution that makes text pixelated is an effect called Aliasing.
This relates to particular colour combinations.
Example: Pure Blue Text on a Black Background never works and looks awful.
Another is Pure Red or Green against a Green or Red Background.
Placing text against a solid colour background can help, instead of placing Text just over the Video.
Another thing that can help is to place your Text on top of some solid colour and/or apply the Shadow Effect to your Text using Black. If you want to get some ideas for which colour combinations work well and look reasonably sharp, then start to take notice of the Menu Screens in DVDs and what Television Stations use for their Graphics.
Google "Aliasing" or "Anti-Aliasing" and read Wiki articles to get a fuller explanation of why Aliasing occurs.