IMovie 10 and DV Video Quality

Does anyone know how iMovie handles DV?  Previous versions used Single Field Processing, which threw away every other line of the video.  This resulted in very degraded video quality upon export, especially if exporting to a DVD.
I doubt very seriously that this was fixed in the new iMovie, but it’s worth asking.

Some additional info.
A 1920x1080 black and white test image was created. The image consists of 120x120 pixel squares. The first two squares in each direction contain 60 black and 60 white lines, i.e. lines with a width of one pixel. The next two squares contain 30 black and 30 white lines, i.e. lines with a width of two pixels. The source image is located here: http://i.imgur.com/AFkrw6L.png
This image was copied 200 times into a numbered sequence. The image sequence was made into a short movie using QuickTime Pro 7. Two versions of that movie were exported: a 25p and a 50i (interlaced) version. Both short movies were imported in iMovie 9.0.9 and iMovie 10.0.1. A text effect was added to add some movement to the movies. The movies were exported to 1080p format via the Share option in iMovie. iMovie 9 exports to .mov files, iMovie 10 exports to .mp4 files.
What can be seen from these 4 exported movies? Both iMovie 9 and iMovie 10 handle progressive video without dropping lines. The full resolution is preserved. iMovie 10 also handles interlaced video without dropping lines. But iMovie 9 (=iMovie '11) and older (since iMovie '8) do not handle interlaced video correctly. Half of the horizontal lines are discarded ("single-field processing"). Also in the horizontal direction resolution is lost; each pair of two horizontal pixels is averaged. Thus a scaled down resolution of 960x540 pixels is used for processing interlaced video in iMovie 9 (and older). This can be seen in the iMovie 9.0.9 50i Test movie. The upper left square is white; the black lines are discarded! The second square is gray; horizontally each pair of two pixels is averaged.

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    You may have hit on something.  Perhaps Compressor's use of H.264 encoding was the reason for my motion artifacts?  And perhaps Final Cut Pro Share retains the 1440x1080 quality as it burns the AVCHD BluRay disc?
    I had Toast 10 for less than 30 days a couple of years ago, and was lucky to get a refund.
    What version of Toast do you have?  Wondering if new Toast 11 has improved previous bugs, especially upgrading its Chapter text, pictures, music.  I would go back to Toast if it came close to mirroring DVD Studio Pro, or even iDVD capabilities.
    Thanks,
    BoBo

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