High degradation of image quality dropping SnapzPro mov file into iMovie HD 6.03

I'm using the older version of iMovie HD 6.03 because it is much easier to work with in syncing audio to images.
I'm making a music video shot on my Nikon. The AVI files look alright, but when I drop a movie file captured with
SnapzPro, the quality degrades terribly, really unusable. The Ambrosia folks tell me there is an automatic conversion
from the mov file to DV taking place which doesn't happen in later versions of iMovie. I really prefer the interface on
the older version and am seasoned with it. Is there a way to bring in the mov file without degrading it?

Is your goal to create a DVD? PAL or NTSC? Then capture with Snapz Pro at the resolution Karsten told you (that's the first two he mentioned.)
If your goal is larger definition than a DVD, then capture in one of the two last resolutions Karsten mentioned.
If you only want computer screen viewing, then I recommend a 720p project in iMovie and a 1280x720 pixel capture.
If you only want to burn a Bluray disc and watch on a HD-TV, then I recommend an 1080i project and a 1920x1080 capture.

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    ID : 2
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    Format/Info : Advanced Audio Codec
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    Format profile : LC
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    Codec : AAC LC
    Codec/Family : AAC
    Codec/CC : 40
    Duration : 00:54:38.179
    Source duration : 00:54:38.193
    Bit rate mode : Constant
    Bit rate : 128 Kbps
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    Channel positions : 1/0/0
    ChannelLayout : C
    Sampling rate : 44.1 KHz
    Samples count : 144567694
    Frame count : 141179
    Source frame count : 141180
    Compression mode : Lossy
    Stream size : 48.3 MiB (61%)
    Proportion of this stream : 0.61259
    Source stream size : 48.3 MiB (61%)
    Source_StreamSize_Proportion : 0.61259

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