I’m watching this because I have the exact same problem with hd to dvd. The only thing I have been able to do so far is to use less contrast and cut out the grainy section of the video. I suspect converting hd to sd is to perfection is a secret. 🙂 P.S My nephew has a 60″ tv and the video he shoots with cheap camcorder doesn’t have much detail but it is clear as glass on a dvd.