I run into the same problem.
A few things I have noticed though, when you play the DVD is it on a TV or computer monitor? I know that most TV’s these days have a higher resolution than 720×480 which is how Encore encodes DVD’s and your DVD or TV stretches the image across the screen. Same goes for the computer monitor, when it is played at full screen, my movies lose quality, however if they are played at actual size, they are crisp and just the way I intended. Id like to find a way around this without burning Blue-Ray or HDDVD.