Just to expand on what Don has Posted:
1) Go to: Setup / Video and Audio Preferences / Video Preview / Enable Full Resolution Preview.
That will give you better quality Preview. However that is still Preview & your finished Project will be better quality than that, when Rendered to DVD & viewed on TV.
2) The Preview Window is small, to conserve System Resources. However if you have S11 (I think), but certainly S12 & have your Desktop Screen Resolution set to 1280 x 1024, a slider bar will appear above the Preview Screen, which you can move, to increase it's size.
3) If you want to Render & view Video Effects in Real-Time, go to: Setup / Video and Audio Preferences / Background Rendering / Ehable Background Rendering.
With Background Rendering Enabled, the 1st Scene Timeline Bar will turn dark green, with light green progress bar. When that Scene has been Rendered, the bar will turn-back again to orange/brown.
If you don't have Background Rendering Enabled, Rendering takes place in the Make Movie Tab, with a blank Preview Screen, untill the whole Project has been Rendered. The Preview Screen Image will appear when the Final File is being written.
4) Someone such as Jeff (jjn), might be able to give you an explanation re: Gameplay.
ADDED - Bit slow in typing & Posting.
