CTA3 3.3.3007.1, on a  iMAC with OS X 10.11.6

I can play a .MOV file in Quicktime and it looks to be at the quality expected. File format is H.264 1920x1080. However when importing the video file to CTA3 the quality of the video is degraded. This was imported into a PROP. I can not see what the import video file quality actually is but it seems "washed" out. Some of the small light colored lines become blurred. I have messed with project settings and with CTA preferences with no improvement to the imported video quality. I may have missed something in settings but unsure what it may be. This is important as my final output animation will keep or even loose more quality depending on my output settings. Do I need to live with this reduction in imported video quality?