I don’t know why it’s doing that, likely a combination of how stabilizer works combined with downscaling output, but try this – EXPORT just the stabilized clip part of the timeline at 1920×1080 using a good intermediate codec like ProRes or DNxHD or Cineform, then replace original clip in timeline with the new, stabilized clip . That will fix the problem.
Or export the entire video as 1920×1080 (assuming you might want an HD master for archiving??). Then export to DVD from that HD master clip.
A couple of things I noticed – source is showing as 29.97 but DVD export is 23.976, is that intentional?
Also, every HD camera I’m familiar with records 48K audio but your source timeline shows 44.1K audio.
Lastly, you can eliminate the narrow black bars commonly seen on HD to DVD exports by changing scaling at upper left to Scale to Fill.
Thanks
Jeff Pulera
Safe Harbor Computers