What format to import AVCHD for best quality and how to export?

Hi
My boss has got himself a panasonic HDC camcorder of some sort that is formatting the video in AVCHD.
Basically he was using adobe premiere pro from around 2003 on an pc running xp and loved it. My I.T. director persuaded him to buy an iMac and Final Cut Pro 7. As we stand now he states he hates macs because he can't figure out how to get his home movies off his camcorder and onto a dvd without them looking blurry and fuzzy.
Can anyone advise what format we should be importing the AVCHD files into final cut pro for best video quality and how we should be exporting the final movie for best quality to go onto dvd?
I will also note that he is using toast 10 titanium to burn his movies to dvd.
Also he is not looking to burn to blu-ray as none of his familiy have blu-ray players. He just wants his HD footage off camera and onto a dvd with the best quality picture he can get. Also his movies are approx 2 hours long and he has just ordered some Dual Layer DVDs
Thanks
Kieran

I take it you mean Pro Res 422 from the AVCHD plugin options? And not going for any of the other 422's with bits in brackets?
Sorry for being dumb in this area but my boss and i are both pretty new to FCP
How do i ensure i edit in a pro res sequence?
Export straight to quicktime no quicktime compression or anything?
Thanks for your help
Kieran

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What format to import AVCHD for best quality and how to export?

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