Originally posted by Sol
I think the original poster gave us too little information about his project and he seemed a bit too eager to blame everything on iDVD.
If he was starting with television reception then how good was his antenna? After that he went to VHS which was probably a consumer model recorder and a consumer-grade tape. Then he went to DV, which could be a camera acting as a converter, Mini DV tape recorded in the camera or a dedicated DV converter. Then he edited in iMovie but I am not sure how he exported; if he saved the movie for iDVD (producing a .MOV file) then that would be one less generation loss but if he exported a .DV file then that is one more generation loss. THEN, he encoded MPEG2 in iDVD but again we are not sure if the overall footage was less than 60 minutes (best quality) or between 60 and 90 minutes (Variable Bit Rate quality).
Now here is the (potentially) silly part: was he using the same video standard in all these applications? If he is in America, he should have been setting the iMovie and iDVD projects to the NTSC video standard. If he is in Australia or the UK he should be using the PAL standard. If he mixed up these settings then the mystery of the crappy video is solved, as the conversion can result in unpredictable colours and glitchy motion in the final video.
If he viewed the DVDs on his computer screen the compression would be more obvious than the same DVD on a television screen. This is because television screens have limited colour capabilities when compared with computer monitors. Computer monitors also make the interlacing found in .DV video and MPEG2 more blatant than a television.
Finally, let me point out that although by default QuickTime displays .DV video in a low-quality mode, you can force it to play back in high quality by pressing Command-J and selecting Video Track, High Quality and clicking on the High Quality Enabled check-box.