Obvious ? Want *best* output for DVD - what do I choose?

OK - this seems rudimentary but I've been on iMovie '08 for about 4 months now and it's still not obvious. I am shooting video footage on my Panasonic DV Camera - it's a great quality. I was under the assumption that I can import into iMovie without losing any quality, edit clips and keep same quality (and I'm not changing any color, audio, or cropping, etc - just clipping out some images, adding transitions), then export in same DVD-ready quality. I want to take the footage and put onto a DVD to watch on a TV.
So, why doesn't that seem obvious? I can't really find the right export. It's cramming down size to 640 x 480 and setting quality at medium. Using H.264 is a compressor - and if I want a DVD, I'd prefer it not to be compressed since it's going to be converted to a MP2, right?
Am I missing something? What do I use to Export at the same pristine quality in which I brought it in to then use on a DVD (and I mean shown on a SCREEN big viewing)?
I hate to commit "apple blashphemy" but when I used Roxio Media Creator or Adobe Premier Elements on my PC, the video was of better quality. I have Final Cut Express and maybe the answer is to spend about 40 hours learning it better because I much preferred the ease of iMovie for quick footage. But, I can't stand the end product looking worse.
Seems like iMovie is fine if I want to shove into a smaller-visual-size, poorer-quality video for MobileMe or email or YouTube but not keeping the quality I bothered to take? (And, even with the latter, the quality is poorer when I do a side by side of video footage from my dig camera - canon powershot s5 is - from straight out of the camera AVE vs pulled into iMovie, added transition, uploaded).
I know there are many of you that are professional videographers out there and can still make iMovie work in your flow for short, quick projects - am I completely missing something here?
I just want the best quality output - thanks for your help -
Alexa
p.s. To establish - I am using DV tapes an importing directly. I also have an ADVC-300 for bringing in analog. I am not messing around with anything during capture.

I'm going to have to disagree with the other poster here. I don't think iMovie 08 is touching the DV format as it's captured/edited. It may be using a method of changing the display, by only displaying a single field (as your screen is progressive, the 2nd field is kinda irrelevant unless it's an interlaced display.)
I do promise to go back to Muppet Labs and test this at some point this week.
On the other hand, the real problem is to "share" the work, iMovie is converting it into h.264 format...and then iDVD is converting it to MPEG-2 format.
To work around this, is pretty simple: Export using Quicktime:
For the Video, change your compressor to DV/DVCPro; the footage is interlaced, the quality slider is useless on the DV codec.
Change your audio to 48k 16 bit stereo.
These match the incoming DV footage, and should export it out 'untouched' for iDVD to make an MPEG-2 file from.

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