So you changed the Bluray project settings to DVD settings, right? What were the settings you made?
What was pixelated? Menus, motion menus, or timelines or all?
Letting Encore downrez HD movies for a DVD does not generally result in the best quality. But look at your DVD transcode settings in Encore first.
I created the whole project for Blu-ray, all of the preview looks crisp and clear. Then I burned a blu-ray of the project then reopened the same project to make a DVD. I did change the project settings to DVD, burned a DVD, then changed the project settings back to Blu-ray. Now all of the preview is DVD quality and no longer Blu-ray crisp and clear.
I don't do a lot of Bluray, and based on other comments, the experiments I have done generally are BD and DVD projects separately.
I wonder if you have to re-render the menus after going back to BD.
DVD is just not BD. When you focus on the "crisp and clear," it makes me wonder if you are just not seeing what you like in the DVD. What is actually pixelated? What are the DVD transcode (defaults) settings? etc.
If you have not done other projects, I would do a DVD from scratch, and see how that looks.
Yeah that's what I have done so far. I have only had Production Premium CS5 since last spring and only have done 4 projects. I backup all my projects onto disc when finished. I was just seeing if there was a work around to this so I don't have to burn two backups discs, one for DVD project and one for Blu-ray project.