Help with Sony DV - DVD transfer

Hi am am using a Sony HC 35. Original I was transferring video via USB which was poor quality. I bought a Belkin firewire card with cable and this is much improved.

However, I film a lot of moving stuff and when the video is transferred to computer the moving stuff looks blocky and blurred, which then appears on the DVD. The quality is excellent when I view directly from the camera to the TV.

I'm totally stuck here, I was wondering if I bought the sony i link cable it would be any better?

I am using Sony's own software (Picture Package) to capture the video via iLink. The blurredness is evident in the AVIs it captures.

I have also tried capturing via Windows, Ulead 10 and Adobe but no better.

I attach a screen shot of the AVI displaying at 100% in Media Player. The edges are fuzzy,

You will probably get people with answers if you post this question on the Digital Video Forum, below, rather than here.