MPEG4 in, MPEG4 out: why getting bad quality using Premiere Pro CS3?

I have to edit a great number of MPEG4 footage (H.264, 720p, 29.97 fps), created with a Samsung NV24HD camera. They have a good quality regarding sharpness, contrast, color. I want the final movies as MPEG4 files, in the same format as the sources.
When I export an edited movie using the Adobe Media Encoder of Premiere Pro CS3, the quality is disappointing. A lot of details are lost and the contrast is less than the original footages. Further, I see that the size of the movies are reduced with about 30%.
I use the H.264 preset ‘HDTV 720p 23.976 High Quality’, but with the frame rate changed to 29.97 fps. Other settings are default.
My questions are:
1) What's wrong here?
2) Is the method using the Adobe Media Encoder of Premiere Pro CS3 the right one to do this job?
3) Do I use the correct settings?
Any help is appreciated.
Arman

created with a Samsung NV24HD camera.

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