Poor DVD Quality when exporting to DVD

I have an HD timeline with XDCam footage 1080i.  I have been trying to export to DVD and everytime I export I get poor quality video.  The image shows distortion and pixelation.  My client is not very happy with the final product and I'm just running out of asnwers.  I have tried exporting using Dynamic Link, Media Encoder and I get exactly the same result.  I have tried exporting the first 15 min with same results. Jagged edges, etc.
I just upgraded to CS5 from CS4 hoping to resolve the problem and I get the same result.  I only have the problem while exporting to DVD in MPEG format.  Blu-Ray format works great.
Any help is greatly appreciated.

Hi Ann
    Here are the specs of my PC.
     Dell Workstation T7500
     12Gb RAM
     Quad Core Xeon E5520 2.27 CPUs
     Vista 64Bit OS
     Terrabytes and Terrabytes of RAID storage.  Too many to mention.
I can edit HD content in real time and works great the only issue I'm having at this point is just Encoding HD to SD.  The encoding is normally done fairly fast, except for HD wich takes almost a whole day to encode when delivered in HD. Right now is taking longer because I'm trying to go from interlaced to progressive I guess.
Question regarding your settings.
My settings are different than yours on:
     Quality = 5
     Field Order = Lower (Could this be the problem?)
Thanks

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