Why does my DV import look so bad in Imovie?

I recently shot a short how to video with multiple cameras. I used a nikon DSLR and a Sony HDV camcorder. The files from the Nikon were shot in 720p and look crisp and clear in Imovie. The footage from HDV was shot in the DV format, I am aware that this will not match the quality of the Nikon but it looks really poor jagged and blury in Imovie yet looks clear in the cameras lcd screen. Why is this and how can i fix this problem? Should i just edit this project in Final Cut?

Should i just edit this project in Final Cut?
That's one way, but expensive.
There is a reduction in quality of the image between iMovie 06 and iMovie 08 through 11.
The difference is the single field processing used by iMovie 08-11 (for faster editing) and the fact that it throws out every other horizontal line.
Final Cut Express and Adobe Premiere Elements 9 will give full quality but are more complicated to use.
In my opinion, iMovie 06 with iDVD 08 -11 is the way to go.

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