I've read through most of this thread, but my first question is how this issue is addressed in regards to iMovie HD 6. There is obviously still a problem because my playback from DVD shows "jaggies" -- but the options for sharing and exporting is different in 6.0. I need to figure out what I'm doing wrong and how to do it right in version 6.0.
Here's what I did:
1) Created 7 slideshows in iPhoto 6 with digital photos. Added custom KB effects to each photo in each slideshow.
2) Exported each slideshow. The only option was Movie Size, which I set to Large (640x480).
3) Imported each movie file into iMovie 6. Added theme elements and music. Playback in iMovie looked acceptable.
4) Selected iDVD from the Share menu. There are no options there so I simply let iMovie send the project to iDVD.
5) Customized the iDVD menu and burned the project. Playback from iDVD also looked acceptable.
I saw no evidence of "jaggies" or other major quality problems when previewing my project in iMovie and iDVD. However, the DVD playback on both my Mac and TV was not acceptable. I wouldn't consider the quality horrible, but it wasn't what I expected and the "jaggies" were definitely there.
I'm a little uncertain of my case in comparison to what I've read here since I didn't create the slideshow in iMovie itself. I can't seem to pinpoint where my error is, and I would GREATLY appreciate any suggestions to help me solve this issue!