Import Quicktime with Quality

I have a Quicktime movie with the following setting that can be adjusted to solve my problem:
Format: MPEG4-Video, 800x600, Millions
FPS: 8.19
Data Size: 28.71
Data Rate: 3087.36
I've imported this movie into the Clips area of a MPEG4 iMovie, and also a DV iMovie from the option at the begining of creating a new project. Both seem to import the quicktime movie in such a way as to loose the quality, the DV option not as bad as the MPEG4, but still not as good as the original.
How do I get the quality to stay? Is it the dimentions of the original? Or something else I can change to keep the quality?
Thank you in advance.
iMac (20" Intel)   Mac OS X (10.4.6)  

These are two different applications and the same format and codec will not be suitable for both.
For VCD the most common format is MPEG-1. MPEG-2 is not suitable for VCD playback. MPEG-4 might work.
Web delivery is dependent on who you expect to view the material. I would use H.264, but it requires the user have QT7. MPEG-2 is not suitable for web delivery. It's designed for full fame size and frame rate. You need to compress the data to a smaller format for that. 320x240 at 115 or 12fps is probably still the most common fromat. H.264 allows browser scaling and scales very well so you can have a small file size which displays at a larger format very well. It also compresses very well a full frame rate and sizes like 480, but it does require a fast computer and a wide pipe for download.

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