An associate of mine has experienced similar dissapointments to those expressed by Wrecks in trying to create DVDs from an RTV-5k to the Pioneer Elite DVD-R unit (I can't recall the model #, has a built in Tivo if that helps to ID it -- and, no he's not paying Tivo a single penny - free svc only). But, since he's about as computer literate as an eggplant, thereby ruling out DVArchive et. al., he's managed to get some form of a solution that works for him in that regard. The only comment that I could pass along from him is "Record in High Quality on the ReplayTV 5000 and don't skimp on the cost of the S-vid cable from Replay to DVD-R" Keeping those in mind, he's accepting, abet not extatic, of the resulting DVD-R's and how they look on his Vidikron (sic?) projector (old model - predating progressive inputs by many years - but a Barco at heart none the less...).
I dunnno, I'm just passing along comments... But the video-out to DVD-R versus computer extract & burned has been beat to death here so many times it's almost pathetic. Search around a bit, you'll find a mountain of info from people that have forgotten more about video standards and quality etc. then the rest of us (myself included) collectively know. searching around for "VCD recorder" might help with some answers for the quality questions you posed also.