HELP: Pixelated dissolves on m2vs

Hi there -
I know this is not a new issue, but am wondering whether it has been resolved.
I have edited DV footage in FCP. It's DV-NTSC 48k, nothing special. There are fade-ins and fade-outs created within FCP.
The exported Quicktime movies look great. But when I burn DVDs, the burned DVDs show incredibly blocky, pixelated regions on the fades. Seriously, it looks like the worst web movie you've ever seen shown fullscreen.
I've been reading forum discussions on this issue and have tried different compressor settings, including one-pass CBR and Quicktime export to MPEG-2 (I have the components). Nothing seems to work.
I am under deadline. Can anyone help me? I've heard Bitvice is great but I'm on a student budget and already own FCP, Compressor and DVDSP.
Thanks!
BB

I should have added that I am using FCP 5.0, Compressor 3.0.3 and Quicktime 7.5.5, and burning with DVD Studio Pro 4.0.0.
If there's another way to help me, please let me know.
Also, does anyone know how I can preview different test clips? I don't want to waste a whole bunch of DVDs burning short test clips, but DVD Studio Pro hasn't shown the blocky pixel issue; it's not till I see the burned DVD that it seems to show up, although that may be a monitor size thing.

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