I don't know if it was 1080p to begin, it was recorded from IshowU HD at 2560x1440 on a 27 inch imac.
In Imovie I went to share -> export movie -> HD 1080p.
info in QT shows 1920 by 1080.
I was doing another export at 1080p while I was typing this post. Using "command I" I did just realize that the original exort (the one I am complaining about) I did was actually 960 x 540. Wasn't exported at 1080p as I thought, however the 1080p does look better but still not as good as just playing it in Imovie.
Is my starting resolution the problem?