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I would normally suggest that you use Quicktime files for this type of transfer. The quality problems you are having may actually be less about the file format and more about the codec that you are using to compress your video. You would want to use a codec that has less compression than an MPEG to have good video to edit. If it is sd footage the DV NTSC or DV PAL codec is usually best and quicktime has hd codecs as well that work.