import of QuickTime movie from iMovie into iDVD produces HORRIBLE text distortion

[ron8o]

I understand there is a problem with text quality when in iMovie and choosing to Share directly into iDVD, so I'm avoiding that by doing this:

Once video project is complete in iMovie I "Share" and export as a QuickTime movie. Once this export is complete I open my iDVD project and drag this .mov file into my iDVD project. The text of the menu item in iDVD is fine, but when this project is actually burned to DVD the text inside the .mov (iMovie) project is completely distorted when watched in DVD Player or on my home theater system.

what causes this text distortion and how can I fix it?

here's what I see on my LCD TV:

Thanks in advance.