QUALITY - .MOVs to Encore, but video quality horrible -- DVD

Hello,
I am a newbie to Encore and video processing, alike - I'm hoping that someone can enlighten me in the ways of High Definition/working with conversion to DVD in Encore.
I'm currently working on making a DVD with a main menu which links to a main feature, Previews, Contact screen and chapters. All of the items for these categories were originally .SWFs and have been converted to .MOVs (using the Moyea SWF to Video pluggin). Not sure if that makes a difference, but the DVD has been completed without any problems, works well in the preview, comes out in the specified 16:9 ratio and links properly. Here is where I feel like I'm walking around in smoke: I would like to build to DVD so that it can be viewed on the Computer as well as TV. But I really want High grade quality video. It seems to me that their was a slight loss of quality from .Swf to .MOV, so I've tried experimenting with everything from the Encore Settings, reading numerous posts on this site and using different conversion formats (MOV, AVI and VOB). I loved the quality when I took the .SWFs to .VOB (however Encore still transcoded and in the end I lost the amazing clarity). After building, when I play the DVD on the computer the quality is a bit hazey (even exchanging the .VOBs for .MOVs.) As of now, my setting are as follows:
PROJECT TRANSCODE PRESETS:
MPEG2-DVD
High quality, VBR transcoding for progressive-frame content (max bit rate =9)
25 fps (the .swfs were built at 24 fps - does this matter?)
quality 5.0
192 kbps, 48kHz, Dolby Digital
VBR, 2 Pass, Min 1.50, target 7.00, Max. 9.00 mbps
Field order: none (progressive
16:9
min bitrate: 1.5
target bitrate: 7
Max bitrate: 9
M frames: 3
N Frames: 12
Video Noise Reduction has been checked and pushed to 100
Deinterlaced was also checked
(what am I doing wrong?)
Right now, I'm so determined to get the best quality - So, I've begun exporting the entire Encore project to .SWF to see if this will do the trick. In the meantime, how can I build to DVD with the highest quality possible?
Than you all in advance.
AC

This is correct, the .swf/.flv files are so compressed that you will only retain the quality of the origional file at best. I've tried this for months and about a Terabyte of files and have found only 1 way to get a good quality DVD from an .flv/.swf.
Connect 1 computer to a TV to play the .swf/.flv. Connect the out connector from the TV to another computer with Premiere installed via the graphics card and then capture the video as it is playing in premiere in the highest quality you can. This can make 30 minutes of compressed .swf into a 10+GB DVD video file. Then after capture, edit and send/export to Encore, make your DVD and then encode like normal.
This has been the highest quality DVD from .swf/.flv that I have been able to achieve.

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