Ok, first of all, Entertainer: THERE IS A MUSIC TOGGLE. Second, your opinion on amateur effects is bullshit, so what? He is not an expert designer.
I think the BG is pixelated for the simple reason that you have not contrained the proportions in a PHP or HTML webpage, so it will show full size on any resolution, mucking up the pixels and real size of it.
Reduce the time delay of the fade outs from the NAV BAR, it looks like it lags when you switch from one to the other.
Get rid of the small arrow floating above the text box.
Make a banner, and make it "brush" in at the top, instead of the text.
Then, for your render, make him dissolve in, or try and find a nice effect. He just kind of "plonks" himself onto the screen and it looks crass.
Smooth the boxes, dont make them look like squares. Use solid colours for now, dont try gradients.
Try "brushing" the BG with a darker colour whilst adding more darker colours to the navigation and boxes.
Overall? Hm...... well, it is not perfect, far from it, but it is a start, and I am sure with some help of other "pros" you could get it nice.
Edit - Contact me for some expert flash templates I have, I can give you the editable versions and you can get some ideas from them ( not my temps by the way ).
And if you are going to take ANY inspiration from a web designer templates go here www.hypertemplates.com .