On my photoshop CS3, I save a picture of something then i paste it in, i move it into position (make it smaller) and then i hit complete the transition or whatever then it is all crappy quality and smooshed. any way i can fix it? this is what im trying to crunch to the bottem of my movie poster
http://americangun-movie.com/images/credit-block_0...
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Photoshop seems to do a better job of reducing an image if you do it incrementally 50% at a time until you get it close to the size you want it. Then use the Transform control to tweak it. There is a limit to how well it works though. Raster images just don't scale that well in either direction.
However, I notice that most of what is in your sample is text. Text that you create in Photoshop is comprised of vectors. Vectors scale infinitely well. Just scale the text before you rasterize it.