Videos in Engage '13 (Update 2) Not as Sharp as Previous Versions

I have an Engage FAQ interaction with several MP4 videos. On my previous version of Presenter/Engage, the videos were clear (not perfect, but fairly clear). When I upgraded this FAQ to Engage '13 (Update 2), the videos have become "fuzzy" - almost to the point of being unusable. I have the video set to the highest quality (9) when I publish (along with resizing the browser to the "optimal" size and locking the player at optimal size), but the videos are still fuzzy. I even tried recreating the FAQ from scratch with Engage '13, and the videos did not improve.

Do you know of anything I can try to make the MP4 videos as clear on Engage '13 as they were in the previous version of Engage?

Thanks!