Poor image quality using iMovie 8 or iDVD after importing DV file via FW

Hello,
i am a complete newby and asking for help. I have bought a Panasonic NV-GS320EG-S miniDV Camcorder. First i connected it via S-Video to my Pioneer Plasma which worked fine.
I have connected the camcorder via Firewire to my iMac 20/2,4 GHz, camcorder will launch import window, streaming works but in iMovie the image quality is already rather poor. I can cut files and all but after using Import film and burning it with latest Toast, picture quality is even worse, that means colors are natural but no sharpness, lots of shivering lines as soon as the angle is moving.
I've tried to import directly into iDVD with the direct transfer function for Firewire which works technically as well but the result is mainly the same, when i burn the DVD the picture quality gets far worse than via S-Video connection.
Last thing i tried is importing to iMovie, importing for media browser and reopening file in iDVD which burns the DVD later, all that works technically fine, but the image result remains absolutely poor, my wife meant inacceptable...
Any ideas what that could be??? I've always imported and exported the film with the largest picture mode possible...

I am using the Panasonic HDC-SD5 camcorder which records in AVCHD.
I also have a JVC miniDV camcorder.
The following is available in iMovie 08 help:If the larger sizes are not available, the original project media isn’t large enough to render in that size. The largest media size used in the project determines the final movie sizes you can render.
Tiny: Always 176 by 144 pixels.
Mobile: Always 480 by 272 pixels.
Medium: Varies in size from 640 by 480 pixels (standard aspect ratio) to 640 by 360 pixels (widescreen), depending on the size of the media in your project.
Large: Always 960 by 540 pixels (widescreen). No large size is rendered if your original video isn’t high definition (HD).

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