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clear sharp images become pixelated once uploaded to PS Elements 11


Level 1

I recently downloaded my purchased version of Photoshop Elelments 11 onto my new MacBook Pro.  I used the program about a week ago and all my images were fine.  I went to use it again yesterday and all my clear images once uploaded into PS E11 became pixelated and distorted looking.  I even went back and tried to upload old photos to see how they would look and the same thing happened!  I've read in forums people complain about this exact problem and one thing that they stated was the Cache Levels may be too low.  A level 4 was recommended to fix the problem, however in my computer the level is 6 so I imagine that is fine. 

Please help me fix this problem!

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