Quality of imported movies is very poor: SWITCHER FROM PC TO MAC NEEDS HELP

I find the quality of the video images imported from my JVC gz-mg575e to be very poor. If I play my movies directly of camera on TV I have a crystal clear image. After importing the movie in IMovie 08 the quality gets worse.
I already selected the ultrafine mode for the camera.
Is there something wrong with my setting of iMovie?
Or is it because I use iMovie08 instead of Final Cut Pro?

This is a PAL camcorder I think. Are you are selecting PAL as your setting when you import into iMovie?

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