Distorted video in Captivate

Hi,

I am working on a project where I embedded a video on Captivate slide. Unfortunately, the quality of the video is not as good as the original video file. Most parts of the text and the images in the video has lost clarity. The audio also seems to have lost some clarity as I hear static noises in between.

I have imported the video as an event video and have not resized it on the slide. Slide quality and project quality are set to high.

Details of the original video: .mp4 file, 480p, 480*854.
The video is not in HD as the current size of the file is already nearing 100 MB and I do not want to increase the project size more.

Is this problem because the video is not in HD and would having a HD video solve the problem? Is there any work around to retain the quality of video in captivate. Appreciate any help in this regard.

A few sample screens of the original video and video in captivate are below: