Why does Compressor's HDV output look worse than iDVD's output of same?

Okay, here's the thing... for weekly updates I've been sending the client outputs via iDVD. And they've honestly looked great. The HDV footage fills the screen and doesn't show any noticeable compression funkiness. But for the screening of the completed first cut I wanted to deliver what I thought would be an even higher quality look (esp since I intended to deliver the completed project mpeg and AC3), so I exported the HDV cut out of FCP via QT and converted it with Compressor's DVD: Best Quality 90 minutes to turn the HDV into SD 720x480 16:9 letterboxed. I then burned it with DVDSP, complete with nice looking menus, etc. And I was shocked viewing the output. The two clips I'd reversed in FCP stuttered, and even a clip with nothing on it was strobing. Plus, close ups showed noticeable compression on the faces. So what gives? Why does it look so much better when I just slammed it out on iDVD? What don't I "get?" I've scoured the books I have and nothing seems to give me a clue.
Any direction would be greatly appreciated!

Lightroom uses its own raw converter and its own camera profiles to convert the raw data into an image.  This will never be the same as the camera-manufacturer’s raw image decoding either in camera or using camera-manufacturer-supplied software or any other third-party software.
Here is a general explanation from a few years ago, that is mostly valid, with the one exception that there are no camera-matching profiles for your brand of camera:
http://www.lightroomforums.net/showthread.php?1285-Why-did-Lightroom-ruin-my-photo
The IDC is apparently using camera settings and is clearly sharpening the image and quashing some of the lens-flare, oversharpening in my opinion.
You can do these sorts of things in LR, too, but you have to tell it to do things, it won’t do this by default. 
The 2010 and 2012 are related to Process Version not Profile, and one difference between the two PVs is how the toning responds to near clipping conditions.  Your reds are very saturated and near if not actually clipping so it is not surprising that the two raw conversions are not the same.
Can you provide a link to the raw file, using DropBox.com or similar large-file-hosting-service and maybe someone will give some tips on how to make the LR processing closer to what you’re seeing with the camera-manufacturer version.?

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