I have used Apples Disk Utility to convert my DVD home movie (which is a Video_TS file) into a CDR file on the IMAC. You do this by choosing choosing "DVD/CD Master" from the Image Format pop-up menu on the Disk Utility when creating a new Image.
Now I want to turn the CDR file into a MPEG-4 file.
The source and output size are the same. I think the difference in image quality could be that the DVD and MP4 file open in different size window. This could explain the difference in picture quality when played on the computer.
I am wondering what the size values actually mean. It's 704 x 576.