Fuzzy Video in Selection Player

I'm fairly new to Final Cut Pro software (please forgive me if my terminology is totally wrong!) and I've noticed that the pane at the top right that plays back the video as I'm making a section is fuzzy. What is strange is that when I pause it, it goes back to a clearer, high resolution, but the moment I hit the spacebar a play the video, its blurry.

When I play back the video that is composed in the project pane below, it will play back in high resolution. So I am only see the fuzziness when I am dragging over the clips to preview the content and make selections.

I'm not in charge of recording the video, so I am unsure of what brand or kind of camera we are using. I am only in charge of stitching the interviews together, but I do know its a 1080p HD video camera.

Any tips would be great! Thanks!