Bad quality when making DVD disc in Toast 8

[kokaiinum]

Ok so i have spent around 6 hours on trying to make a .Avi into a playable DVD disk in Toast 8. And i have done that before and it has always turned out great.

But this time around, it came out really weird both times i tryed the same file. The picture quality got all jaggy/pixelated.

First time i used the highest quality settings and the second time around i used normal, but the result was the same.

Hope some of you can help, maybe im missing something.