Bad image quality on stills

I apologize if this has already been addressed somewhere, but I have searched the forums quite a bit and found nothing about this.
I am creating a DVD for an advertising agency. One of the things they want on the disc is a section displaying print ads.
I have created a menu with thumbnails and when you select an ad it takes you to a menu with that ad blown up to full screen.
The problem I'm having is that the ads, even blown up to full screen, look really bad. There are jagged lines on all the edges of text and pictures and the copy just looks garbled and impossible to read.
The ads are very large, very high resolution pdf or psd files. They look great when I view them outside of DVDSP, so the problem is not with the source files.
On top of this, I am having the same problem with the agency's logo on the main menu. The psd file looks great in photoshop and is a very high resolution file, but in DVDSP it has jagged edges and loses color quality.
So my question is, what do I need to do to prepare my pdf or psd images so that I can bring them into DVDSP and retain the quality of the image? Also, I have been adding them to a menu as a drop zone...is that the best way to do it?
By the way, the problem is not with the encoding of the disc...all the menus and videos look great. It's just the still images that look bad.
Any help would be a lifesaver.
Thanks!
PowerMac G5   Mac OS X (10.4.9)  

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