Re: HDV sourced footage looks great edited in FCP, turns to crap when going to DVD Studio Pro

You are listing HD prefs above, make sure you are making an HD DVD.

Now if you want the BEST quality from FCP timeline, EXPORT>Using Compressor, in compressor the preset CBR if your bitrate can be over 6 Mbps (you don't list the length), make sure the framerate is the same as the sequence and the field order is the same as the FCP timeline, even if it is Upper in FCP, it needs to be Upper in Compressor. Make the audio ac3 (do a search for proper ac3 settings).

You can do a 5 min test if you like.

This method will give you the best image quality but it will take the longest and it ties up FCP and Compressor for the entire process, but it is worth it.