DVD Studio Pro Poor encoding of dissolves

Hi there
I'm on the latest version of DVD StudioPro using FCP 5 to throw out a short mood tape in the DV PAl format.
No matter what I do the dissolves between pictures re always heavily compressed and pixelated which is no good for my clients. I have tried setting highr bit rates, 2 PASS VBR...any help
Interestingly enough though more glitchy (so just as rubbish in a different way) when you burn in toast I do not get the problem
Any help many thanks
Andrew
G5 2GHZ Dual Processor 2GB RAM DVD-R   Mac OS X (10.4.1)  

Is it working well in FCP? Are you sure you're creating M2V files and not MPEGs? Does it do this on all DVD players?

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