Poorer quality DVDs with Menus then without?

Finally managed to burn a DVD of my son's first moments.
First off, just edited 45 minutes of clips with transistions, titles, audio, etc. etc.
Picture quality was equal to the DV tapes in my camcorder and I was very pleased.
Got bored. Used the same movie but added some chapter markers, menus, photos and some music in iDVD and burnt an updated version of the first attempt.
Picture quality, especially on my iBook is a lot grainier and when viewed on my TV looks inferior to the original DVD without all the menus.
I can understand the photos that were placed in the drop zones perhaps not being the correct resolution but why should the picture quality of the movie be any different?

Umm. Just what I thought.
I'll let you know how 'Best quality' fairs but I'm definitely not impressed with my efforts to tart up the original - might just as well left it as it was.
OK, the in-laws wouldn't have any menus or chapters but at least it won't look like it's been filmed with a two bit halfpenny camera!
Incidentally, total running time went from 45 to about 60 minutes but not only are the photos in the drop zones blurred but the actual chapter names and other lettering is extremely blurred.
As for the resolution of the actual movie it has gone from broadcast quality to a noticeable grain. In iDVD it looks fabulous but both the disc image version and burned DVD version look sub-standard.

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