DV camcorder to iMovie / iDVD - Why does my DVD look so bad?

I have an SD DV camcorder (a canon opt-40 model which is quite decent for SD)which when I hookup directly to my TV puts out a pretty decent picture.
I have imported the video from this camcorder into iMovie and done the assembly. I then put it through iDVD to burn a DVD. Many hours later I get my 1 hour long DVD and put it into my DVD player and play it and see a significantly degraded poor picture (youtube quality).
Somewhere along the iLife chain I must have lost resolution but I can't seem to find settings to increase the quality or resolution.
What am I missing? What can I set to retain better quaility for my imported video?

Somewhere along the iLife chain I must have lost resolution but I can't seem to find settings to increase the quality or resolution.
You can't.
What am I missing?
iMovie 06.
For faster editing iMovie 09 uses single-field processing. This means every other horizontal line of the video is thrown out, which reduces the sharpness of the footage.
Your primary workflow is editing DV clips and making DVDs, iMovie '06 is better suited. Your movie will arrive at iDVD in DV format, which is an ideal match for making a DVD: same resolution, same pixels, same aspect ratio, and original quality. If you share your movie from iMovie 09, it gets re-rendered at 640x480 or less, and then iDVD upscales it back to 720x480. The end result is obviously not as good.
iMovie 06 and iDVD 08/09 is a "lossless" combination.
You can get iMovie 06 in a number of ways. You cannot download it FROM APPLE any longer. You can also find iMovie 06 on the iLife 06 install disc. You can buy iLife 06 on Amazon or eBay.
But be prepared to pay about double the cost of iLife 09 (but well worth every penny). Seller's are becoming aware of its value.
I use iMovie 06 and iDVD 09 and my DVD's look like they came from Hollywood!
iMovie 09 is a wonderful program assuming that you're using it for what it was designed to do, assemble simple videos to share on the Internet.

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How about this, new rule, all Adobe employees are required to build 5 blu-ray discs this month. Two of them have to have animated backgrounds. Three should be built with progressive source material, one with interlaced material and one with mixed material. All of them should have professional video quality in the final disc.
Now, report to yourselves the massive amount of bugs you find and get them fixed. You will probably need to put a large portion of your workforce in therapy after being subjected to this process... just FYI.

DV camcorder to iMovie / iDVD - Why does my DVD look so bad?

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