Distorted edge on alpha layer

[Aaron296453883az1]

My layer with a transparent background has this pixelated distortion around the edges when I drop a background under it. No idea what is causing the problem. 

[Kevin-Monahan]

Hi @Aaron296453883az1,

Thanks for writing in. Interesting problem. My hunch is that your alpha channel may need to be interpreted differently. Select the graphic and choose Clip > Modify > Interpret Footage and go to the Alpha Channel controls. Try to interpret the footage as premultiplied and see what happens. Let us know.

Thanks,
Kevin