I am using HD 720p 25 fps. When i add the video from captured from screencast to kdenlive, it looks blurry and pixelated. How can i fix this or is this normal?

Does is only look blurry when you get it to youtube? Or is it blurry on your side before you upload it to youtube. Because, I had the former problem and it was fixed by making sure I choose the high quality version from the youtube interface.

What I have also found is that Kdenlive does not ship with profiles that match the screen capture formats that my system captures in. What I do to get the best possible edited result is to use clip properties to see the properties of the source video and then I create a custom project profile to match the source. See http://userbase.kde.org/Kdenlive/Manual ... t_Profiles for info on how to create custom project profiles.
Eg my source is 1280 x 1024 ITU-R 709 yuv420p Pixel Aspect Ratio (PAR) 1 24 fps so I created a profile to match these settings.