[Angela Boyd] “I am using Apple DVCPRO- 50 NTSC right now..is that correct?”
Is that the compression of the footage you are using in the timeline? If so, then yes.
The quality issue stems from the fact that your footage originates from a DVD. Mpeg-2 VOBs are HIGHLY compressed, and you are then recompressing them into a workable format. This situation is FAR from ideal. The best thing would be to have the source tapes, but if you only have the DVDs to work with, then you are stuck with this quality loss.