Recently, I created a freeze frame of my video image, and then using keyframes within the Rotation menu, set it to rotate a few times.
Playing it back in FCP looked fine, however after creating an mpeg2 with Compressor, the motion became pixelated. It didn't play back as smoothly.
I used 7.6Mbps as Average Bit Rate & 9.0Mbps as Maximum Bit Rate with Motion Estimation set to Best and 2 Pass VBR.
I used AC3 (Dolby Digital) for audio compression.
Should I be using a lower bit rate or different settings? I always thought a higher number gives you a smoother image.

I'm using Mac Pro 2.66gHz with 2gb ram