There is always quality loss when encoding to a different format, but sometimes it isn't obvious.
Any file that is encoded for DVD has to be encoded down to MPEG2 which is a compressed format, so the quality depends on the quality of the source video. When converting it is always best to try and convert directly to the format you want rather than convert to 1 and then again to another.
Try it and see if the quality loss is noticable or acceptable.
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Edius Pro 4 Broadcast, Edius DVX, ADVC300 -- PremPro 2.0, Matrox RT X100
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