option 1) I give a 2/10 - I am probably biased because every time I've tried this the loss of quality was a tragedy of epic proportions.

option 2) I give a 10/10 - I am probably biased because this is the method I always use - and the loss of quality is extremely minimal.

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My System Specs:

Cameras: 2 x Canon XL1s
Computer: Dual Intel Xeon 2.8Ghz processors (hyperthreaded) - Intel SE7505VB2 mother board - 2 Gb PC2100 RAM kingston -Adaptec FireConnect 4300 -2xseagate 10K scsi hdd 150G ea -2xseagate 7200 ide hdd 200G ea - Plextor PX-708A DVD burner - ATi Raedon 9800Pro video with Dual SUN 21\" monitors - Sound Blaster Platinum live!
Software: Windows XP Pro with SP2 - Pyro Pro (adobe\'s premier pro, encore DVD, and audition bundle)