Video editing quality

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ntbone

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I bought an emachines t3092, to use as a video editing machine. however, when i burn to dvd, i notice a sudden drop in the quality of my video. i was wondering what may cause this, as the quality that i have seen come from other computers is less pixelated and more clear. could it be the video card or the dvd burner? please enlighten me on how to fix this problem. thanks.
 
this may be the dvd burner, but may also be the format its in. The best video format i've seen is made by divx. www.divx.com. its high quality. it takes up space, but i think its worth it
 
do i need any special software to capture video in mpeg2 format? because i use adobe premiere to edit, and i don't think it's an option when i'm importing from my camera.
 
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