Best mp4 options for high quality HD video?

I'm importing video from a 1080i AVCHD camcorder into iMovie 08 and when I'm exporting to mp4 format using Quicktime the resulting video is horribly pixelated. I've tried the same with Final Cut Express and I'm getting the same results so I'm assuming the issue is with the settings I'm choosing for the export.
I'm trying:
MPEG4 Basic
7200kbps frame rate
1920x1080 HD
Frame rate = current
Just how high does the data rate have to go to keep the equivalent video quality from the camera as if it's plugged directly into the TV? If I plug it into the TV the video quality is sharp with no pixelation - the results of the compression using MPEG4 make the video look like its been taken with a cheap helmet cam

I'm having a similar problem. Everything looks great when I burn to DVD, but if I'm exporting the file online it's a disaster.

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