well, it depends, from a digital camera (i assume you mean a still camera that can do clips) you get two types of "pixelation"
the first type is digital noise, showing up most in dark areas, sometimes as colored dots, sometimes as grain, like tv static
the second type is compression artifacting, caused by the MPEG or JPEG lossy compression. it looks like large, poorly defined, fuzzy squares in the image. often in random patterns, and appearing in an area of high movement.
the digital noise can be flitered slightly, one technique is to duplicate the layer to V2 in your editor, blur it a few pixels (Gaussian blur is good) and then make it transparent. you need to fiddle with the settings a bit.
in the long run, you can never get really good footage from a digital camera, its often at 15 fps, low resolution (320x240), and of course, grainy as hell.
also, if you're editing and applying effects to the clip, and then saving out to the same file or the same format again it'll just make it worse. you should convert them to a higher quality format right off the bat, use DV or something lossless.
did that help at all?
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