Why does the Video looks Pixelated after Burning DVD

In IDVD when I preview the video it looks great, when I burn the DVD it comes out very very pixelated. I've changed the preferences from Best Performance to Best Quality, and the project properties as well I've done the same. Does anyone know why this is happening?
I'm using 16:4 aspect ratio Video Size is 1280x720
Help

How are you viewing the DVD you created - on a computer or on a TV?
In IDVD when I preview the video it looks great
The preview uses your original content on your hard drive and is simply designed to allow you to see if the 'flow' (sequences, menus, etc) are what you wanted.
In addition, although iDVD 'supports' HD, it only supports it in the context of current specifications - not the new HD DV world that has two competing HD DVD formats.
This means your 1280x720 content gets downsized and compressed to fit on a 720x480 DVD. The video must be 'expanded' to play on a HD set.
BTW, your aspect ratio is 16:9 and NOT 16:4. 16:4 would REALLY be widescreen! I haven't seen THAT spec yet.

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