Mark
I've just exported about 6 minutes of snippets from a wedding DVD using the DVD recorder to iMovie method. Imported to iMovie (4.0.1) with no apparent glitches. I then played back from iMovie to the DVD recorder, viewing the results on the connected LG LCD 15" TV. The images were very good - a slight drop in quality from the original DVD, but not that noticeable. The clips contained added music, transitions, "wild" audio and titles - all appeared OK.
It's getting late, so I'll have another look tomorrow. I don't think there is much point in test recording to a DVD, given that the viewing on TV was OK and I use the same method to record to DVD (using the iMovie preference "play through to camera")
I will see how I go tomorrow and get back to you.
John