Can't Get Acceptable Quaility Compression.  Help!

Hello,
I am burning a very simple DVD of a project and no matter how high I set the Bit Rate, motion detection, etc, I still get blocky areas in my darker scenes that look terrible. I have tested almost every setting in compressor, DVD studio pro and the built-in MPEG 2 compressor in Quicktime with no luck.
The film is only 20 minutes and its a very beautifully shot 35mm short film. It would be a shame to send it out with these scenes looking so awful.
Is there a way to burn an MPEG 2 with no compression? Would it fit? Is there a better compressor on the market than the ones bundled with DVD studio pro? Is the problem in the source footage? The film was transferred to video at a top-grade NYC post house so that can't be the problem, can it? The quicktime looks beautiful.
I would hate to send this out on VHS. Any tips?

MPEG-2 is a lossy compression method so there's no way to make an MPEG-2 "with no compression."
While it is true that as the amount of compression goes up (file size/bitrate goes down) that MPEG-2 'throws-away' information (lossy), in practice, if properly compressed, MPEG-2 video can be very close to lossless. Superbit DVDs, for instance, are compressed with very low quantization. The quantization stage is the only aspect of MPEG-2 that is lossy. Other aspects of the compression, such as motion compensation, huffman tables etc, are exactly reconstructed during decoding. When the bit-budget is appropriate for the material, MPEG-2 is a high-performing codec.
You can verify this experimentally with our MPressionist premastering tool, which allows you to view the differences between your source material and compressed MPEG-2 version as 'pixel residue', a visual map of the actual per-pixel difference amounts per-frame throughout a compressed movie.
Compressor can definitely produce quality that is close to visually lossless. One customer I recall was having a problem with field dominance at transition points (FCP setting problem), and his particular program material, encoded with Compressor, looked excellent at 6.5 Mbs.
Gen Kiyooka
www.digigami.com/mpressionist/
As per Apple Discussions Terms of Service:
"I may receive some form of compensation, financial or otherwise, from my recommendation or link."

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