I'm trying to find a solution that will allow me to edit in iMovie 09 and export it somewhere/somehow without losing quality. Maybe the Quicktime method described above will be good.
I use and LIKE both iMovie 09 and iMovie 06, but for making DVDs iMovie 06 always looks better to me.
I have spent many, many hours trying (and re-trying) all the iMovie 09 quality "work arounds" but my DVDs never look as good as when I use iMovie 06 with iDVD 09.
The quality issue with iMovie 08/09 are well-known.
From PC World review. "The way iMovie '09 handles video internally is mostly unchanged from the previous version (iMovie 08): interlaced DV and HDV footage use single-field processing to improve performance, which means iMovie is throwing out every other horizontal line of information."
"Apple has deliberately made a tradeoff between performance and image quality for some footage."
http://www.pcworld.com/article/159090/
If you want no quality loss, use iMovie 06 or Final Cut.