Why does DVD Pro degrade the quality of my QT movies

SUMMARY
I have only been using Final Cut Studio for a couple of months, but have achieved good quality QT files for burning in DVD Studio Pro. Up to the stage of Compressor, the quality looks good. But import the files into DVD Pro and the image becomes blurred.
If there is anyone out there who may be able to help I will willingly go into the depths of detail.

Thanks for such a quick response to my posting. Being new to this kind of forum I wasn't anticipating such a quick reply. So ...
Details:
System info:
MacPro 2,1
2 x 3 GHz Quad-Core Intel Xeon
4 GB Memory
ATI Radeon X1900 XT
Cinema HD monitor 1920 x 1200
2 x Pioneer DVD-RW DVR-112D
Mac OS X (10.4.11)
Final Cut Studio 2 - ( FCP 6.0.2, Compressor 3.0.2, Soundtrack Pro 2.0.2, DVD Studio Pro 4.2.1, Motion 3.0.2 etc., )
Adobe CS3
I am trying to create the best quality DVD I can achieve using the following mixed input media
1 avi Output from Camtasia Studio screen capture software which is captured "full screen" at 1024x640 by my client
(This could be output directly at 1024x576 by cropping before saving and can be QT mov format if necessary - however so far I have been converting to QTmov directly before editing the client files in FCP to add transitions not available in Camtasia Studio)
2 Quicktime movies created in Flash output at 1024x576 - these include digital images, Photoshop and Illustrator files
3 dv PAL footage captured 16:9 anamorphic
My workflow approach has been to edit in FCP, including sending to Soundtrack Pro Audio Project, then to export Using Compressor with the intention of importing the edited file into DVD Pro.
However the Preview in Compressor has shown disappointing resolution and I don't have the knowledge to choose the best settings. I have tried many combinations to the point that I have thoroughly confused myself.
At this stage I need a "guru" who can suggest the best settings throughout to achieve the optimum result.
In answer to your other question, the potential viewer is likely to be viewing on a PC using Windows Media Player or on a Mac using DVD player, BUT I also want the DVD to be playable on a set top DVD player.
I am viewing my production on my Mac monitor which as you can see above is high res.
Thank you for offering help. All advice (except jumping off cliffs etc.) welcomed

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