Wow, I really appreciate your in-depth analysis of my problem. It is only when the covers are displayed on the TV that the pixellation occurs but look fine on my PC even when blown up. I do not know how to screen grab my Tv to show you. I know it is a big ask but I have uploaded the covers in psd format and wondered if you could save them into jpg for me. Also, I am a complete novice using Photoshop so have no idea what you meant by the blending process to make them look like your covers so I just reduced the “fill” opacity so a bit of your scaly background shows up. I fully understand if you can’t do it for me. Your efforts in improving the theme is far more important. 
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My PSD files:
and this one I cannot get the text to look like yours
http://www.mediafire.com/i/?t5g77y9kasmouav
Thanks in advance!!
