soft edges in premiere?

This is definitly one of the stranger issues I've encontered in a while. I have been keying out some footage recently and am noticing that the same keyed out subject when moved from the center of the frame to the edges of my composition (doesn't matter which edge) looses sharpness as if it were a lens that isn't as sharp in the corners. As I progressivley move it closer to the center, I start getting my sharpness back. Doesn't matter what codec I use or if the footage is rendered or not, this still happens. My preview mode is set to high quality and compatible for the desktop display mode.

Here is a frame grab of what I am seeing:
http://egproductions.tv/transfer/edgesharpness.bmp

Here is my workflow:

Shoot 5D MOV files
Cineform convert to AVI
Key out footage in full reoslution AE CS4 sequence
embed into smaller sequence in AE and downsize footage retaining nested resolution
Export as uncompressed AVI
Bring into HD project in Premiere CS2
Move around to desired position
 
So it appears that its not an inherent lack of sharpness of the corners but its a loss of edge detail when you move a smaller resolution video to the corners of a larger resolution canvas. I believe it must have something to do with premiere having to interpolate where and how the pixels should be moved and the further you get away from the center or origin point of the video the worse job premiere does iterpolating the data. This is much like downscaling an image; you loose edge sharpness because of interpolation. I just never expected it to happen from simply moving a 100% scaled clip around a canvas.

Still trying to figure out a solution...
 
OK, so the temporary solution is to reposition your clip in premiere to the desired location and open your premiere project up in AE and export an uncompressed clip out of there. AE does a seemingly perfect job at interpolating how the pixels should be moved over.

I'm just dissapointed that premiere doesn't do this perfectly and that I have to go through this process if I want perfect results. It seems like it would be a no brainer to implement. I have to check if this is the case in later versions of premiere as I am only using CS2 currently
 
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