Silly question: how do you know that the DV-PAL codec is horrid? Are you watching the result using Quicktime Player on the Mac? Because QT Player, by default, shows DV-encoded videos in low quality, and it indeed looks awful; you have to go to Window/Movie Properties/Video Track (the wording of the options might not be exact, I’m going from memory) and enable the “high quality” checkbox to see how it will really look like.
Excuse me if you already know this or it has nothing to do with your situation. It’s just that I’ve seen this mistake bite *a lot* of people.