Thank you so much for your response. We found out that when transferred to BetaSP this problem did not occur. We ended up switching the bubble so it looked more like a circle. Not the best, but it worked. I also noticed that this is happening a lot on mainstream TV programming also. If you look inside people's mouths on shows that are taped on DV, it gets pixelated. Anyway, I wanted to respond since the project is finally over and I can reflect on it. Thanks for your help.