Why poor quality when I export in HD?

I've shot some video on a Panaonic HDC-HS9, imported in original quality, edited it up, and want to export it in HD quality, for later use on DVD and YouTube HD.
When I export it using the standard setting HD 1080x720 (in the export movie... option), the quality is pretty poor, nowhere near HD standard, although the original footage is crystal clear.
Am I importing wrongly? Exporting wrongly?
The exported files are about 100MB per minute, so should look very sharp on my MacBook screen, rather than fuzzy.

I'm kind of a novice at this stuff, but if you select "Export using QuickTime..." instead of "Export Movie...", you have a lot more options to choose from. In particular, you can choose a 1920 x1080 resolution, which should improve the quality of your movie (but it will take about 4x longer to export and the file will be about 3x bigger). There are a lot of other choices as well... wish I knew what they all meant!

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