This sounds like a de-interlacing problem. Are your viewing the video on a television set or your PC screen when they appear blurry? If both, then your WinDVD is de-interlacing the video by averaging the two fields for each frame. Research WinDVD to see how to change or switch off the de-interlace, (Hi-8 is always interlaced video, which looks best on television sets, but horrible on PC screens.)

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Fav quote - "Experience is whatcha don't get 'till ya don't need it no more."

System - Athlon 1.4GHz, Win98, Hauppauge PVR250 receiver and compressor.
Software -Magix Movie Edit Pro 10, Nero 6 + NeroVision Express, Moho 4.61, PSP 8.1, Bryce, Quicktime 6.52 pro, Goldwave 5, DVD-Lab.
Cameras - Panasonic GS9, Canon ES8400V, Canon EOS D20 and Canon A70