DVD quality after going from DV to MPEG4

I have been frustrated over the loss of clarity when I use iMovie for capturing movies from my video camera. Has anyone else had the problem: I capture the video (from DV). The video looks sharp and clear on iMovie. When I save the movie to an external hard drive, I guess the format automatically changes to MPEG4 (?). (I am trying to store family movies on one large external hard drive) Then, when I want to burn the movie, using iDVD, I follow the instructions, import the movie, set it up the way I want it in the chapters, etc., then burn it. (I choose professional quality for preference) When I view the DVD later, on several different DVD players, the quality of the video is always hazy and off. Not to the point of losing the picture, but there is definitely a significant loss of clarity. I got the Apple computer because everyone said it was a superior video tool. I am very disappointed at this point, but wonder if anyone has a suggestion about my process and, perhaps, I am doing something wrong. Any help would be greatly appreciated. Thanks.

The way i usually do it is capture everything DV via Firewire, since you gain nothing by capturing uncompressed (because it's already compressed on the tape). Now I usually edit and colour correct in DV to keep the real time capabilities and everything that is done in Combustion (or any other FX, compositing or graphics app) is saved as uncompressed. Now when everything is finished I duplicate the sequence and switch it to uncompressed (or photo-jpg at 75% which is good enough if you work with DV footage), render and export as Quicktime movie. That way your footage won't get recompressed to DV. You can throw a chroma smoothing filter on the clips, just make sure it's first in the list of filters. This only makes sense if you use titles, vector graphics or loads of filters.

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