Just a couple of points.

1. If Sony are still bundling that rather poor (IMHO) Pixela Image Mixer software, then I would use something else to capture. Why not use your Ulead software to capture in full resolution DV AVI format via firewire?

2. If your project settings are the default MPEG 2 settings then you are using a mid range quality setting. Regardless of your burning method, and if your DVD burning project is under one hour in total, set your Ulead project settings to 8000kbps as folllows

3. From the File menu select Project Poperties

4. Make sure that the Edit file format: drop down box is set to MPEG files

5. Click the Edit button

6. Click the Compression tab

7. Change the Media type: dropdown value to PAL DVD

8. Change the Video data rate: to Variable

9. Change the kbps value to 8000

10. Click OK button twice

11. Continue your project to completion

12. Enjoy

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IBM A51p with 160Gb Boot Disk, 160Gb external Firewire Disk, 2Gb Memory and a super duper sound card, 17\" TFT Monitor etc etc etc
Sony TRV33e : Sony TRV310e : Canon XM2
ULead products mostly including Mediastudio Pro (V8.0), Video Studio 8, Movie Factory 2.0, Premiere Elements

Remember, there is always more to learn than there is to teach.