Hi Shane,
Wow, thanks for the quick response. I generally work with interlaced footage but did a test with progressive footage and still had quality loss. The final destination is for DVD (Pal) The thing is when its played back on a TV it still has the quality loss be it interlaced or progressive. As far as the TV set goes, I played back the footage directly via USB (Shot with EX3) and the definition and quality far outshines the product from FCP.
I do export as a QuickTime self contained movie with current settings which is why I’m stumped.
Clem