dvdsp footage looks crappy

I captured hdv as ProRes 4228bit, (1080i 1440 x 1080) edited Pro Res. It's a 5 min. video. I'm making a SD DVD.

Not really sure if it's the footage that actually looks bad, or a display problem (I'm having trouble w. my mxo not being recognized by fcp). MXO presentation setting is set "Output deskstop as: NTSC (720 x 486) 29.97 fps.

Simulator view on ntsc looks good, but really crappy when watching my acd monitor output via simulator.

Here's the compression workflow/settings I used:

Exported as QT sc. Used compressor settings = apple's "best" 90 minute, aac audio. I did not change any of apple's defaults for this setting.

In dvdsp it's set for SD, 16x 9.

In dvdsp all the footage looks terrible when I view it w. simulator.

In this case, I'm setting jaggy (aliasing) edges on video images as well as text.

I hope I don't have to waste a blank DVD just to test on an actual DVD.

PowerPC G5 DP2.3, 4GB DDR SDRAM, ATI X800XT, OSX.4.11, QT 7.5.5, FCStudio2, FCP 6.0.5 Sonnet 5 Bay SATA (RAID or JBOD as needed), ACD 23" & Sony NTSC Monitor via Matrox v.1
Sony ZIU hdv, edit w.ProRes