Hmmmm? Why don't you just use the AV-In functionality of your camera to record (to mini DV instead of pass through). Then capture from the Mini-DV via firewire. Doing it this way you will be able to check on the cam if the quality problem is with the bullet camera.
In Video Studio check that your capture settings are set correctly to capture in DV Type 1 Format.
If quality is still poor, then try derag of your hard disks.
Hope that is of some use.
COMPAQ something or other with 500Gb Boot Disk, 1Tb external Firewire Disk, 4Gb Memory and a super duper sound card, 19" TFT Monitor etc etc etc
Sony TRV33e : Sony TRV310e : Canon XM2
Sony Vegas Studio editions to v11
Remember, there is always more to learn than there is to teach.