IDVD. Poor quality video in drop zones

Video's added to drop zones in iDVD menu themes look terrible, before and after burning the iDVD projects to DVD.
Every video looses quality. They "blink/jump". For example the eyebrows or cheeks of people jump up and down and are very noticeable. It's as if the footage has been scaled up from a smaller image.
Does anyone know how to handle this? Is there a workaround?
This issue has been adressed before, and it seems there's no solution:
https://discussions.apple.com/message/1902931#1902931
https://discussions.apple.com/message/21604603#21604603
https://discussions.apple.com/message/10396039#10396039
I'm using iDVD 7.1.2 - and iDVD 3, 4, 5, 6, 7 themes.

Just tested the drop zone in the same theme that you posted with a video created with PhotoPresenter and it was very sharp.
Try this basic troubleshooting fix:
1 - delete the IDVD preference file, com.apple.iDVD.plist, that resides in your
User/Home/Library/ Preferences folder.
2 - delete the contents of IDVD'S cache folder: User/Home/Library/Caches/com.apple.iDVD.
3 - launch IDVD and try again with a new project with the same theme.
NOTE: In Lion and Mountain Lion the Home/Library folder is now invisible. To make it permanently visible enter the following in the Terminal application window: chflags nohidden ~/Library and press the Return key - 10.7: Un-hide the User Library folder.
If you're running Mavericks, 10.9,  go to your Home folder and use the View ➙ Show View Options menu to bring the this window:

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