Image Characters have white background

Help,

I am trying to use image characters but I keep getting a white background behind the letter. I am attaching a screen shot of my output and the tif that I am using for the letter. Can someone tell me what I'm doing wrong?

 

Thanks,

KayEll

Oops, Here is the screen shot.

 

I can't attach the letter as it is a tif. The file does have a transparent background. So I'm not sure why I'm getting this white box.

 

Thanks,

KayEll

I figured out the white background, my letter files did not have an alpha channel. Do that question is solved. However, my preview and my output are very low-res. My letter files are 300 dpi and are the final size or larger in some cases.

 

Any ideas?

 

Thanks,

KayEll

Check the Graphics settings in the FusionPro composition menu as you may have one of the downsample options selected.