I feel like I had this problem last year and found a solution, but I am blanking entirely.
I've been dumping ripped DVD files into VirtualDubMod and exporting with Huffyuv and fast compress, and the footage comes out wonderfully, however for some reason, when I dump it into AE, it looks very low-res. All lines like those around the characters look very pixelated, and it looks particularly bad when they're in far shots. I think I remember it being related to how AE is interpreting the footage, like it's only looking at one level of interlacing of some sort, even though there's no interlacing in the footage I have, it reads only every other line.
Can someone assist me in finding out what could be causing this?
Also, as sort of a side issue, I switched my unicode settings to Japanese to play a visual novel and now all of AE is in Japanese... it's a bit annoying, I can't figure out why it did it automatically and can't figure out how to get it back. Any assistance there would help as well.
Thanks, lemme know if you need more details.