Why does my DV clip view fine using the finder preview and has horizontal lines, aka jaggies, on some scenes, using QuickTime viewer 7 or 10?
I assume here that you are talking about "comb-like" llines rendered along the edges of fast moving objects in a scene as opposed to pixel alignment for this diagonal lines which are scaled for viewing on a large monitor or screen. Your content is probably interlaced but being shown in a progressive mode on your monitor. Basically, each frame of your content consists of two "picture" fields. One field contains the odd lines of content and the other the even. These "pictures" are taken/snapped a fraction of a second apart. So, when they are combined together as a single frame, the edge of a fast moving object can be seen to have moved/been displaced during the time between when the two fields were recorded.
I have a segment of a DVD that I want to show in the gym so I extracted it using Cinematize. When I previewed it in Finder window it looks fine. When I opened it in iMovie HD there were extreme jaggies in some scenes, where light and dark area meet. When I went back and opened the file in QuickTime it looked the same. Does finder use something different to preview the files?
Yes, QuichTime and QuickLook are different. In addition the image is so much smaller, it would be difficault to see minute detail using QL. In addition, owning to this reduced size, it may even be using single field playback. (Not really familiar with how QL works here.)