Solved Pixelation with the pan/crop tool

When I pan a video clip it loses quality and sharpness quite a lot. The new image is out of focus, not as sharp. This didn't happen with version 12.

There is nothing wrong with the program.
If you have the wrong settings, then this can happen.

The No.1 thing to look at is "Re-sampling".
By default Movie Studio and Vegas Pro have Re-sampling turned ON.
Right-click your video on timeline and go to Switches - set to Disable Re-sampling.
This will reduce motion blur and give you a sharper image.

You must also set your Project Properties correctly.
Matching your Videos Properties to be the same as the Project Properties, will give you a better image and performance.

Regards
Derek.

Thank you for your reply. I've tried disabling resampling and the same thing occurs. I've set my project properties
exactly to match my source. I've tried changing the deinterlace method and the field order and no change.
I should add that it only happens when I watch it with full screen.

Are you talking about the Preview Window display while you are editing
OR
Are you talking about how the video looks once it has been rendered and you are completely out of Vegas ?

If you are only taking about the Preview Window while you are editing, what happens when you actually render the project and watch the outputted video ?

I am talking about both. It was clearly visible before when watched on an external screen, the full computer screen.
But now, I have rendered the movie to check, and I see the same exact problem.

Please upload to YouTube so we can all see what you are talking about.