What happens to my source files (FM5)?

Hi there! Can anyone tell me what exactly happens to my source file when I include them in a Fotomagico slideshow?
I’m used to work with raw photo material, and prepare my photos in Lightroom, after converting them to DNG’s. When I include such a DNG in FM5 the image is converted to a jpeg file, that is stored in a hidden directory, named Temporary or something, in the root of my disk volume. De size of the file is reduced with a very large amount.
I like to present my photos in the best quality possible, using a 4K beamer with excellent specs. I notice a considerable loss in detail and color, and noise is more prominent.
Two questions: what algorithm is used for the conversion, and can I somehow improve the quality of the photos in FM5?

The conversion to JPEG you are experiencing doesn’t happen in FotoMagico, but in Lightroom itself. You are importing the lightroom preview into FotoMagico. The quailty of the previews is determined by the settings in Lightroom preferences.

A better approach is to first export from Lightroom to a separate folder, with export settings that you can choose, e.g. high quality JPEG, with full resolution, or TIFF.

Then drag this folder into the Image browser in FotoMagico and work from there. That way you know which quality and image size you are getting, and you’r not dependant on random internal preview settings in LR.

Thank you very much, Peter. A crystal-clear answer to my question. I mostly use the Standard Preview in LR. Seems I better use “1:1 Previews”. And better still, export TIFF’s. Only that approach would hinder a simple back-and-forth interaction between LR and FM. But I understand this interaction will be easier in FM6, when the use of 'Live" LR Libraries will work again.
Thanks again.