Please help... I'm a newbie at this!

Hello everyone,
I have a home video that I had taken to a service bureau so they could transfer the footage from a mini-dv tape to a DVD (I had used an older camcorder that is not compatible with Macs, a Sony with a USB plug). Now I want to edit the DVD footage using iMovie HD. The files from the DVD are VOB files and I bought a video converter software so I can convert those files to ones that iMovie HD can support.
I converted the files to MPEG-4 AVC Video format. But when I imported them into iMovie, the video is pixelated. Any suggestions on which file format to use when I convert the video? Video/Audio quality settings? The video converter gives me several options on formats. I'm not sure which one is best. My goal is just to edit this home video and make a fun DVD for my family to watch. I'd appreciate any help. Thanks in advance!

Hi mjgt and welcome!
Not sure why you did what you did.
iMovie exists specifically to import DV streams from miniDV tape via firewire for editing etc, and then sending to iDVD for making the final DVD, which will be in mpeg2 format.
Your way will result in a lot of extra work, a lot of extra software, and the very quality loss you have seen.
Are you quite sure your digital Sony video camera did not have a firewire connection? Sony call this iLink. Check the manual again!

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