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Welcome to the forum.
The issue is likely that you are shooting to MPEG, which is heavily compressed to start. Then, you are Exporting/Sharing as MPEG, with another compression. Last, you are going to DVD, which will compress that footage to MPEG-2 one more time.
Perhaps a better workflow would be to use a lossless intermediate file scheme, like the free Lagarith Lossless CODEC, to save one compression. Note: the file sizes will grow exponentially. You will need a lot of HDD space. You will still have two compressions (the original in the camera and the Transcode to DVD), but 2 will be better than 3. Motion, either camera or subject, will point up the compression artifacts most.
You are most likely seeing interlacing. This is because you used the DV project settings rather than the settings for MPEGs and VOBs.
Start a new project and this time select the project settings for DVDs and Hard Drive Camcorders. Your results should be perfect.
BILL: No - that was not the solution, but you made me realize how terribly I treat my movieclips. I will certainly do as you suggest.
STEVE: That did the trick. I have never even noticed that I should make a choice in that menu....
THANKS a lot to both of you for the fast response and professional advice.
Glad that Steve had the solution, and thanks for reporting.
When starting with heavily compressed material, like MPEG-2, it is always best to induce as few additional compression steps, as is possible.
Good luck and happy editing,