MiniDV to DVD transfer via iMovie and iDVD?

I own a Sony DCR-PC9, which is a digital tape video recorder (MiniDV) circa 2001. (yes I know, time to upgrade) I have about 20 tapes to transfer to DVD. I am using iMovie to import and edit the video and iDVD to burn the DVD. Digital tape is not HD of course and I really do not know what resolution it is. All the tapes were shot in 4:3 (vs. 16:9) so I know I will have some issues with bars on the sides. My real questions are:
1. How do I make sure that I import the highest quality image I can from the recorder into iMovie? I do not care about the size of the file.
2. I have no problem actually importing and editing but the DVD I create is very poor quality when played on a new LCD HD TV. Is that just the way it is? A “bad” source (digital video tape) being played on a brand new TV? Is there something I can do either in iMovie (editing) or iDVD (compress, not compress, upconvert, etc.) to make the DVD quality better? I really have no knowledge of what “compress, not compress, upconvert, etc.” mean and I threw those in there as I see those words all the time. It seems as though there is some choice in how the DVD is burned in iDVD. Are there other products that can improve the video quality before it is burned to the DVD?
I am not interested in making any fancy edits, adding titles, etc. I just want simply to get the digital video tape on a DVD but with good quality. I did plug the video recorder directly into my new TV and as expected, the quality was not good. Am I just doomed because I have a “bad” source (digital video tape) being played on a brand new TV?
Thanks in advance for your help.

Your camera is a miniDVD camera with FireWire. It is 4:3.
Have you tried the OneStep DVD approach in iDVD? (Look in the iDVD HELP for OneStep).
This will let you transfer your video content to a DVD without using iMovie.

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