rendered AVI resolution of graphic is terrible, others good

[wgregori]

I'm creating a DVD and when I render it it uses the AVI file time to create the ultimate for the video... the the AVI looks terrible. The title bar graphics are all jagged. If I render it in wmv HD 1080 it looks great.

Why would that be?

[wgregori]

Here's what I've found with a little experimentation on my system. To get the best results when rendering my video.

1 - if have Videostudio render then burn my disk, it starts by rending the to an AVI file then burns to disk. The resulting avi file is very large 2 gigs but the resulting quality of my video is not good in this regard. All my menus (these are png file) are very poor resolution. The video (which are MTS) are just fine

2 - Before burning to disc I render the video to Mpeg4. The resulting file is small in comparison (544 megs) but the video quality is very good with all the menus and other png files looking very nice.

I've read here and there that AVI is the best format for transitioning to a DVD disc...

Am I somehow diminishing my final result by going to Mpeg4 first rather than allowing videostudio to render to avi first... my visual results say no but what's the theory behind this?

Thanks,
Wayne