No easy answers, but there appear to be significant problems with your workflow. To oversimply, you have two goals. First, to eliminate any interlacing from your path. The second, to eliminate any unnecessary conversion.
Start with the camera. What format are you actually shooting. “MTS” is just the “wrapper” and does not indicate quality. I would recommend 1080p29.97 at the highest quality (lowest compression) the camera shoots. Unfortunately, you may not have the storage for this in long form. As I mentioned, if your ONLY goal was the best, most efficient DVD, then 1080p24 is ideal, but for many reasons, I am not a fan of 24p, especially for active subjects.
You must pay special attention to the “p” in 1080p. Just because a camera is described as 1080p doesn’t mean that’s what you are shooting. In fact, it’s unlikely the camera defaults to 1080p. It likely defaults to 1080i (“i” for interlaced). Also, your camera may not be “full raster” 1080p. Cheaper cameras cheat this. You get a 1080p recording, but the camera can’t actually give you full 1080p quality. If your only goal is DVD or file-based playback, you may be better off shooting 720p30 (not 60) to conserve space. I hate to recommend this, but the extra storage needed for 1080p may not be helping your quality at all.
Now assuming you shoot at 1080p, (insert 720p if that’s what you do) any editing you do should also be at 1080p using either the camera codec, or a higher quality codec. If you are adding titles and effects, I would argue for a higher quality edit codec, such as Quicktime ProRes 422, DNxHD, or Cineform. The codec does not actually matter until you output. If you render directly from the timeline, then there is no intermediate codec at all. I cannot recommend this though, as it is generally bad practice for professionals for a lot of reasons. Output your master to one of the professional codecs above.
Now the DVD. There is no such thing as a true 720p DVD. Only Bluray can be HD. A standard DVD is NTSC only, 480i or 480p. You want to go from 1080p master to DVD elementary streams. Output a master at 1080p. Then use Encoder to make your DVD elementary streams. There is a preset for this, but you want to control it. It’s going to take a bit of negotiating to set your bitrate as high as possible without going over the DVD size limit. Your audio should be MPEG, not PCM. Frankly, I don’t use Encoder because Encoder can’t make an AC3 audio track which is a far better choice, but MPEG will do.
Now author these elementary streams using Encore. Make sure Encore is not recompressing. This may be tricky, especially if you’ve made the files too big. You’ll need to review the automated settings. I can’t help much here because I use DVD Studio Pro and dislike Encore.
There are many tutorials for this, but the keys are to eliminate interlacing from your workflow, and scale/compress only once, directly to your DVD elementary streams. You also need to do the math for bitrate so you use the highest bitrates possible while still fitting on the disc.
Cheers,
tod
Tod Hopkins
Hillmann & Carr Inc.
Washington, DC