I just videotaped a dance concert and when I transferred the video to my computer and output it to a DL DVD, the quality is nowhere near as good as a straight HDMI connection to a TV. It doesn't even look that good on the computer in Premiere elements before I output to DVD. I'm using Adobe Premiere Elements 7. I don't know if it's the project settings for the transfer, I chose HDV 1080i 30. Is Premiere Elements maybe not going to give me what I want? My Camera is a Sony HDR-FX7
I assume you are working with high definition video in a high definition project preset and burning as a standard DVD. How much video do you have on the DVD... for maximum quality (8Mbps with PE7) you are limited to a little over an hour for a SL DVD and 2 hours for a DL DVD. Any more footage and the bitrate will be reduced lowering the quality. If the quality is still poor you could try downconverting in the cam and capturing as DV-AVI and working in a standard definition project in PE7. Certainly in early versions of Premiere Elements this gave better quality
Other thing to consider is that your standard definition footage played on a DVD (which is a compressed format as well) is never going to look as good as the high definition video played over HDMI from the camcorder.