Low quality of burned DVD even if I drag&drop iMovie project into iDVD

Hi all,
I've a iMovie HD project that I want to burn via iDVD (7.0.4).
If I click "Share with iDVD" the quality of the resultung video (which is burned to DVD) is rather poor. As I've read within this discussions, the preferred way is to close iMovie and "drag and drop" the iMovie project into iDVD.
With this way, iDVD (instead of iMovie) will render the movie, which should give a video with far more quality.
Unfortunately, the burned DVD with the "drag and drop" method has the same low quality as the video with "Share with iDVD".
I've done a little research and noticed that the "shared movie" for iDVD (iMovie project->Show package Contents->Shared Movies->iDVD) for a 1:10 video has a filesize of only 32kb!
Is there any way to set the "export" parameters for this "shared movie" (it is a quicktime file)?
The quality of the completed DVD is acceptable if I export the iMovie project to "DV stream" an import this stream into iDVD. But in this case I lose all my chapter markers of the movie ..
Is there any way to export the movie from iMovie HD and keep all the chapter markers for iDVD?
Importing the iMovie HD project into iMovie 08/09 is not an option, as I lose the chapter markers also ..
Thanks in advice,
Kind regards.

Hi,
the iMovie project was created as "DV" project and I imported DV PAL clips. The iDVD preferences are also PAL (25fps) and the quality setting is "professional quality".
I've also tried the setting "best performance" within iDVD (as suggested within this forum), but with the same poor result.
I can see within the iDVD "project info" that iDVD will use "mymovie.mov" within the "Shared Movies->iDVD" of the iMovie project (Show package contents).
As this converted movie is of low quality, I think this is the root of evil.
If I export the movie from iMovie with "Export as DV stream" and import this converted movie into iDVD the quality is ok - but I lose the chapter markers ..
Is there any way to keep the chapter markers?
Kind regards.

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