If you do not have an external monitor in your FCP setup you have never seen your footage.
DV footage has to be prepared well to be encoded well, you have to color correct it, the chroma needs to be within broadcast limits, especially Reds. Reds will always pixelate. If your footage is noise it is even harder to get a clean encode, and shooting with squeeze mode will give you noisy video because it is electronically zoom into the image. Also did you use gain when shooting.
DV is also hard to get clean text. One of the best ways to improve the quality is to Export with Compressor from the FCP timeline, this will bypass the DV compression on your text. If you are under 90 minutes you can use CBR encoding set to 6 Mbps and that should give you the best result possible.
[Andy Snyder] ” I have tried to output it many different ways and am having no success. Any tips on the best way to output for DVD from FCP for use with DVD studio?”
Sorry to sound harsh but that is not useful at all, you need to give specifics on what you did.