Adobe Elements 12 - Video quality of downloaded DVD in editing software

Why is the video quality imported from a 1.4 GB mini disc into the Premiere 12 software worse then when I just watch it directly on my computer?  It seems like there is a big step down in quality after I download it to edit in the software program.  Why is this?  Is there something I can do to maintain the quality of the original?

Beaver Dan
Thanks for all the helpful details.
Here is what I would like you to do.
Open Premiere Elements 12.
Go to File Menu/New/Project and, in the new project dialog, set the project preset to either NTSC DV Standard or Widescreen (depends on if you recorded 4:3 or 16:9). Before you leave the new project dialog, put a check mark next to "Force Selected Project Setting on This Project". Close out of there.
Back in the Premiere Elements 12 workspace, go to Add Media/"DVD camera or computer drive"/Video Importer. You will need to have you miniDVD in the drive tray. Will your burner tray accept the miniDVD for place in tray? Most do.
In the VIdeo Importer dialog that is opened, go to the Source: field at the top of the dialog and make sure that you DVD drive is selected there.
Your Video Importer should be populated with thumbnails. Uncheck all. Select the video files from the DVD-VIDEO. The names should be VTS_01_1.VOB, VTS_02_1.VOB, and so on depending on how long this DVD-VIDEO is.
Make sure that you have the Save In: field set to a named folder for this batch of VOBs. If you want the VOBs on the Timeline of the project as well as saved to the hard drive, make sure you have a check mark next to Add to Timeline. Then hit Get Media to get your VOBs into the project.
Do the Publish+Share/Disc/DVD disc export with the NTSC Dolby DVD or NTSC_Widescreen Dolby DVD preset.
Play back the DVD-VIDEO on DVD disc using your computer and one of its players for that purpose as well as the TV and its DVD player. Let us know the results.
We will be watching for further developments.
Thanks.
ATR

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