Thanks for the prompt answer, I've tried again and I think I'm still doing something wrong. Am I missing something out?

Here's what I tried:

- rendering my Vegas project as Main Concept Mpeg2 using the DVD PAL template (I don't appear to have an 8mbps render template in Vegas). It says; Audio: 224 Kbps, 48,000 Hz, Layer 2 Video: 25 fps, 720x576. This results in an mp2 with a fairly fuzzy looking picture with the interlacing look again. It doesn't look right to me, there's certainly a marked deterioration from my Preview (and well below the quality of the wmv file).

-importing the mp2 into DVD Architect, all I want is a single movie, no chapters or text, so I did File> New> SingleMovie and opened the Mpeg2 file.
- I used the PAL video format the same dimensions as the MPeg2 file, 8Mbps, AC-3 stereo for audio when it came to Make DVD.
But I got a message that the video would be recompressed and also the audio.
It seems sensless to me to try and burn an original file I'm not happy with and it gets compressed further.

It's only a 12 minute video...
Any idea where I'm going wrong?