You can download free codec packs from the web. In order to burn to a dvd it "HAS" to be mpeg-2. I'm guessing the quilty is off because the bitrate is to low or the field oder is off. If you video is shorter then 70min just use A CBR of 8,000,000 and then render a few min. with lower, upper, none (progressive) Field Order and see what works best.
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