Video from iPhone to iMovie on Mac and quality issues

Task: Wanting to take video from my iPhone 5 into iMovie HD Version 6.0.3 to do some editing, trimming, transitions, etc. I have done this on many occasions but have NEVER been able to share/export the finished product with any kind of quality result. I want to upload to youtube and it never looks very good. Looks "ok" if just viewed as is, but if you click on full-screen it does not look good.
I have never liked any of the other newer versions of iMovie - old dog new tricks problem. I have versions 9.0,9 and 10.0.3 and maybe I need to use one of those to solve the problem. If so would someone please tell me should I export as .mov or .mp4 and what exact settings to use.
If I can get good quality using iMovie 6.0.3 then would someone please tell me should I export as .mov or .mp4 and what exact settings to use.
It seems like this should be such a simple process but for the life of me I can't figure out how to make it so. I see many other videos that I know have been taken on people's phones and edited and they look great - even when shown in full screen.
All help is appreciated!
mmatt

iMovie '11: Import video from iPhone
http://support.apple.com/kb/PH2149

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