I Goggled your camera and it seems to be a HDD camera. Transferring via firewire won’t increase quality. In fact, no connection will increase quality because your video is already recorded to a hard drive in your camera. All you’re doing is a simple file transfer when you go from camera to computer. So it’s not a connection issue.
What steps have you taken to down-convert for SD DVD? And have you tested your DVD on a TV or did you just look at it on your computer? SD video looks bad on a computer, and keep in mind that you are going from HD to SD, so a loss in resolution is inevitable.
