"Dude, where's my Blu Ray?"

So, I'm having trouble getting good results on my blu ray burns. Here's what I'm doing:
1. Import HD clip from Sony EX-1 card.
2. Prepare clip using Compressor set to mpeg23. Import to Encore, set to Blu Ray in appropriate drop downs, check and build on a re-writable disc using an external blu ray burner.

The results are not stellar. Subtle (but noticeable) pixel shifting in large blocks in the blacks. There is pixelation around the edges of the actors, particularly in areas of high contrast (a white shirt against a darker background). Anywhere that there was some grain in the original is magnified after the burn. I tested another clip from an entirely different scene, and it still looked very non-HD. I am expecting too much from my desk-top authoring system? I hope not. My burner is a MATSHITA BS-MLT SW-5833. I've looked for firmware updates but have found nothing (except for one Japanese lanuage web-site). Anyway, I'm thinking it's not a burner issue. I feel like I'm missing something simple, but I'm following all the prescribed methods in this and other forums to the letter.
Thanks,
Jason Kapell
Fairfield University
Media Center