True, DV lowers the quality, epecially in fine color detail in saturated colors.
What’s probably happening is that because it is DV, it’s assumed to be interlaced video.
After effects deinterlaces (and throws out a field) for displaying.
(it looks like it has half resolution vertical)
You’ll have to either render it out using fields or interpret the footage as having no frames.
I don’t use premiere, but it’s possible it does the same thing: only displaying 1 field so you don’t see jagged edges on the computer-screen.
When you export or dump to video-tape, it’s probably solved.
If not, ask this question in the premiere forum.