Will Elgato Turbo converter/encoder fix the posterization issue in iMovie?

I know this is a well-known issue with iMovie. Dark spots and shadows look posterized or color-banded in iMovie. I've scoured the internet in search of a solution, but short of learning how to hack my computer and install different codecs, I can't find a reasonable solution. I know the elgato turbo USB stick is an encoder. My question is, if I used the elgato turbo to export my videos, would that get rid of the color-banding issue? Does that even make sense? (I'm not a video expert.) If anyone has tried this, let me know. If you don't know what I'm talking about and what I'm trying to get rid of, see the image below.

Ok..here are some files to help demonstrate the problem I am encountering.
access my iDisk here: https://public.me.com/testpilot58d
*RC Stuff.mov* is the footage from my camcorder in iMovie.
When I export it to HD 720p setting using turbo.264 HD, the resultant file is *RC Stuff.mp4*. This file is beautiful...perfect...crisp...looks just like my HD camcorder. It is 1280x720 progressive (Apple TV spec), avg bitrate 4,907 kbps (Apple TV spec) but it is 59.940 fps (NOT to spec) size 3.2mb
When I choose the "Apple TV" output option, I get file *RC Stuff.m4v*. It is flat, not crisp, doesn't "popp" on either my iMac or when viewed on Apple TV. It too is 1280x720 progressive, avg bitrate of 3,438 and 29.970 fps. I changed output size to 1280x720 in the Apple TV preset and it still looks flat and crappy.
So....who can get me from point A to point B? How do I need to process RC Stuff.mov to that it will LOOK like RC Stuff. mp4 but is compatible with Apple TV specs and looks as good on a HDMI LCD flat screen TV? How do I deinterlace/what field order, etc to cut the frame rate in half and still look sharp and crisp?
Thank you anyone in advance!

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