Fuzzy video when importing to Canvas or Camtasia

After recording a session, I have imported the video into Camtasia and at first it is clear but then it turns fuzzy.  When I import it directly into Canvas, it is fuzzy.  I found an article with Camtasia that said to check the "Optimize the recording for 3rd party video editor" box but this did not help.  

Anyone know a way around this?

Thanks in advance.