I didn't say the video came from a DVD, I was talking about it being in DVD
resolution. That is the maximum resolution that WMM can output, ie. 720x480
pixels in the NTSC television standard, regardless of what the input
resolution of the source video is. The taped resolution is likely lower than
that anyway. That resolution (720x480) would look sharp on a standard TV
but will be blurry when watched in full screen mode on an LCD or CRT
monitor. It should look sharp and crisp if you watch it in a window at its
actual size though.
The WMV video format is already MPEG4, so you don't neccessarily need the
files to be AVIs if WMV is accepted where you upload them. You do need to
use the highest bitrate possible when you encode the file to get the best
video quality. That means many of the presets in WMM are not going to be
good enough, especially the default "Send to Web" settings. All of them
output the video at 320x240 but only the DSL preset uses a half decent
bitrate (384kbps). The other two presets are meant to create very small
files, not very good ones. If you pick the option to "Show more choices" you
get acces to more settings for broadband, allowing up to 512kbps bitrate at
320x240 resolution. I don't know if myspace allows videos that are 640x480
or higher.
You could convert the WMV files into AVI format, there is software that you
can get to do this, but that wouldn't improve the video quality.
Looking at the videos on the myspace link that you posted it is plain that
those videos are pretty low resolution ... only 320x240 perhaps. As well as
using the lower resolution (which in itself throws away much of the image
detail) these videos were also encoded using quite a low bitrate, which
throws away even more image detail just to get small file sizes. That's the
main reason why the videos look bad. On top of that, the files were
apparently converted again after you uploaded them, into Flash format, which
means even more image degradation was caused, possibly without you having
any control over the final conversion process.
The biggest single factor affecting quality that I could see in those videos
was the low bitrate. Even a low resolution video can look crisp and clear,
but you have to use a high enough bitrate when you create the file in order
to retain the detail from the original video. If your files get converted
into Flash videos after you upload them to Myspace, YouTube etc, then there
is not much, if anything, you can do if the Flash video ends up being poorer
quality than the WMV or AVI file you uploaded.