Many versions of MPEG are interlaced, and won't look good at all on YouTube.
I'm surprised your video looks distorted. What are your project settings, listed under the Edit menu? You might be outputting to a format that's different than your project settings.
My project settings are, HDV 1440x1080. 30 frame. Can I export using the MPEG tab in PublishShare? I don't mind not using AVCHD.
If you use MPEGs, it will look pretty awful on Youtube. But you can give it a try if you don't believe me.
What model of camcorder is your video coming from?
Sony HDRP J260V Handycam. It cost me 500.00, so it's a good HD camera. Previously, I used Pinnacle Studio 8 software (version from 2 years ago).
It used MPEG's. It looked good on youtube. Never had any issues with image quality on youtube.
This Adobe software is a challenge to upload quality image to youtube. I'll keep experimenting with it.
Could you include in your follow up with SG some clarification on the details that you have been presenting.
You say that your camcorder is the Sony HDRP J260V. From what I have read that shoots
AVCHD 1920 x 1080
AVCHD 1440 x 1080
MPEG2 720 x 480
Just what is your camcorder set at? I ask this since you keep mentioning MPEG2 which would mean that you are dealing with 720 x 480. Yet your project settings are 1440 x 1080 according to your post.
The project preset should match the properties of your source media so that is why I bring up this important point which SG's questions have been targeted.
ATR is absolutely right. The quality of your output is a combination of your source footage, your project settings and the Publish & Share template you've used for your output.
But by no means will a MPEG output look better when loaded to YouTube than an AVCHD, when you've got your workflow properly optimized. Because they are designed for playing on an interlaced television, most MPEGs are interlaced, which gives them an ugly "comb" look on Youtube.