MPEG2 Playback Quality

Hello,
I'm trying to use the MPEG2 Playback component to extract some VOB files from DVDs files for editing in iMovie. However, the files always come out with a jitter in them when there's a lot of movement on the screen. It's particularly noticable during title sequences or long pans.
I've tried converting using MPEG Streamclip and QuickTime Pro with several different codecs with many different settings on two machines and they all exhibit the artifact.
Is there something that I'm missing with regard to converting from MPEG-2? Do I need to get a higher end video system such as Final Cut Pro? Am I smoking something and overlooking something stupid (most likely)? Any advice would be greatly appreciated.
I don't think it's performance based, I'm using a dual 2Ghz PowerMac.
Adam Ruth

Your source files (MPEG-2 from the DVD format) may be the cause.
The export and conversion can only use what it finds to work with and export to other compressions schemes (.mov or .mp4, etc.).
Have you tried exporting to DV Stream? This should keep the quality of the MPEG-2 file very similar to the source.
Since iMovie is a DV editing app it only makes sense to export to something it uses natively.
Exporting to other formats and then reintroducing the file to iMovie will convert your file. You don't want that to happen.

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