I've made what for me is a major discovery about the issue of pixellation in DVD productions. First, "pixellation" wasn't the best word to use. The picture I was getting in finalized display wasn't blocky, as with pixellation--but instead there were vertical lines or waves over various objects in any given scene, especially objects further away from the camera, and especially faces.
Secondly, I've discovered, however, that the problem isn't with VP's rendering--it's with VP's video conversion prior to editing. At this very moment I'm burning a DVD with a little test project to see if my theory is correct. But at least so far as display on my computer goes, I've found that VP's rendering looks just fine if I first convert .vob files to .avi or .wmv files using a different converter (in this case, Any Video Converter 5). I copied .vob files off a movie disc, then used AVC5 to convert them to high-quality .avi files at HD 1080, then uploaded those files to VP for editing and rendering.
(Moments later...) Just tested the DVD I burned with a VP-edited .avi--and it displays perfectly on my TV! No lines or waves. Yaaaayyy!!!
However, a couple new--and, I think, probably minor--issues. The motion seems a tad jumpy at times, as if frames are being skipped here and there during playback. Another problem is that people's skin tones are too red. Is the jumpiness due to the fact that I've blown up these .vob files--originally 720x480 (29 fps)--to 1920x1080?
Thanks!