Best Recording Format for DVD's ?

I'm recording 60+ minute footage to eventually transfer to DVD - we use this for our business and it must be DVD.  I'm using iMovie and iDVD.  I understand DVD's are not HD, but the problem is that the final product is not very good - pixilated.  Would it look better to record in SD instead of HD?  I use a newer Sony and it has an HQ option. Would this make the final product, as seen on DVD, look better? 
On the other hand, am I missing something in iMovie or iDVD?
Thank you!

Hi
There are two things
• DVD is as standard - interlaced SD-Video
Feeding it HD - will not improve but degrade the picture as down-scaling function is not good
Using iMovie'08 to 11 - makes things even worse - as non of them can deliver 1090% interlaced SD-Video any way known to me to iDVD. They discard every second line - resulting in a severe quality loss.
So
• Recording in  full SD-Video quality - streamingDV - and
• using iMovie HD6 or FinalCut (any version)
• Keeping all in same frame rate - PAL to PAL or NTSC to NTSC
• High quality DVD brand - I use Verbatim (only)
• DVD-R - as they play on more and even older DVD-players
• Pro Quality encoding
• Burn Speed - set down to x2 or x4 (less burn errors)
• minimum of 25Gb free space on Start-Up (Mac OS) hard disk (others do not count)
• all audio in .aiff - NO .mp3 or other exotic formats
Will result in best possibly DVD
Yours Bengt W

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