I have almost the same problem, the only difference is I'm using an AIW 8500DV. The original video looks fine, but after the rendering into mpg2 format to burn to DVD it comes out crappy. I was using ULEAD Studio 6 to do the transferring. So my conclusion is that converting from vhs or direct from camcorder just doesn't work well all the time. As a matter of fact, I just went out and bought DVD X Maker to see if that software will work any better. I will probably test it out this weekend and see. If anybody else has any other ideas for Jackeric and myself please let us know!