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Problems with Lagarith encode HELP!!!


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First time poster here. I have successfully finished my first edit! But alas, I am having some trouble exporting/encoding it to AVI using Lagarith. See, I have been using kk650's color corrected version of Attack of the Clones as my edit source. (Saves me from having to color correct it myself) the original source file was an MKV which I ran through VirtualDubMod using Lagarith. The result was near perfect if not completely perfect. Once I finished my edits in Premiere I then proceeded to export using Lagarith, but the result looks like it has a huge loss in quality. The edges of letters are jagged and look awful. I did find a work around that I was happy with, but it meant exporting as a h.264 MOV file. I am currently working on a new crawl for my edit using blender. I thought maybe it was just a problem with Premiere, but when I run the rendered file, be it h.264 AVI, h.264 MOV, or PNG sequence, through VirtualDub using Lagarith, I still get a poor quality/jagged edged video that I cannot use in my edit. I feel like I have tried everything. I read a forum post here where someone was having a similar problem, but I don't know if there was a solution that I can replicate. I currently am not able to post any example videos or pictures right now, but I will be sure to do so tomorrow. Any ideas would be much appreciated until then though.
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