DVD Quality Changes?

I just burned a movie that was 1gig in size and the quality is fine when i watch it on my computer but when i burned it onto a dvd a bunch of squares are distorting the picture making it fuzzy? how do i fix that?

8/12/2007 2:52:54 AM info ********** Report session closed ***********
8/12/2007 2:52:53 AM info Media removed. Burning layer not ready to write
8/12/2007 2:50:06 AM info Finalization Time 00:00:23 - Total completion time 00:08:13
8/12/2007 2:49:43 AM info Write finished in 00:07:50 - Finalization start here. Avg. burn rate 7.14
8/12/2007 2:41:58 AM info Lead-in burning time (mS) 0
8/12/2007 2:41:53 AM info Write started 2066032 sectors to write
8/12/2007 2:41:53 AM info Init success: DVD-R SAO
8/12/2007 2:41:53 AM info Writing speed requested x8.0, effective x8.0
8/12/2007 2:41:49 AM info Available write speed: 16x, 12x, 8x, 6x, 4x
8/12/2007 2:41:49 AM info Media ID: SONY16D1
8/12/2007 2:41:49 AM info Media type: DVD-R
8/12/2007 2:41:49 AM info Ultra DMA mode 2 (ATA33)
8/12/2007 2:41:49 AM info Scanned files #9, folder #2 - total size 4230121472 b. (3.94 Gb.)
8/12/2007 2:41:49 AM info Inserted media type : DVD-R
8/12/2007 2:41:49 AM info Write started
8/12/2007 2:41:48 AM info --------------Encoding end--------------
8/12/2007 2:41:48 AM info Media name: “Fresh”
8/12/2007 2:41:48 AM info Burned folder: “C:\Documents and Settings\Owner\My Documents\ConvertXtoDVD\Fresh”
8/12/2007 2:41:33 AM info New media inserted. Burning layer is ready to write
8/12/2007 2:41:31 AM info Compatible media types : DVD-R, DVD-RW Seq., DVD-RW RO, DVD+R, DVD+RW, CD-R, CD-RW, DL DVD+R, DL DVD-R
8/12/2007 2:41:31 AM info New Drive selected : 1:0:0 - PIONEER DVD-RW DVR-111D 1.23 [E] (Ide)
8/12/2007 2:41:31 AM info Total size in built folder 4034 Mb., Target size DVD5 4400 Mb., Occupation 91.69%
8/12/2007 2:41:31 AM info Conversion completed in 01:48:22
8/12/2007 2:41:13 AM info ------------Converting Menu--------------
8/12/2007 2:41:13 AM info Generated duration 6844.84 sec., expected 6845.42 sec.
8/12/2007 2:37:49 AM info Chapter #23 start at 110:0.010
8/12/2007 2:33:09 AM info Chapter #22 start at 104:59.710
8/12/2007 2:28:25 AM info Chapter #21 start at 99:59.910
8/12/2007 2:23:48 AM info Chapter #20 start at 94:59.610
8/12/2007 2:19:07 AM info Chapter #19 start at 89:59.811
8/12/2007 2:14:32 AM info Chapter #18 start at 85:0.011
8/12/2007 2:10:04 AM info Chapter #17 start at 79:59.711
8/12/2007 2:05:23 AM info Chapter #16 start at 74:59.912
8/12/2007 2:00:41 AM info Chapter #15 start at 69:59.612
8/12/2007 1:55:35 AM info Chapter #14 start at 64:59.812
8/12/2007 1:50:56 AM info Chapter #13 start at 60:0.013
8/12/2007 1:46:04 AM info Chapter #12 start at 54:59.713
8/12/2007 1:41:28 AM info Chapter #11 start at 49:59.913
8/12/2007 1:36:37 AM info Chapter #10 start at 44:59.613
8/12/2007 1:31:32 AM info Chapter #9 start at 39:59.814
8/12/2007 1:26:52 AM info Chapter #8 start at 35:0.014
8/12/2007 1:21:59 AM info Chapter #7 start at 29:59.714
8/12/2007 1:17:12 AM info Chapter #6 start at 24:59.915
8/12/2007 1:12:26 AM info Chapter #5 start at 19:59.615
8/12/2007 1:07:41 AM info Chapter #4 start at 14:59.815
8/12/2007 1:02:53 AM info Chapter #3 start at 10:0.016
8/12/2007 12:57:57 AM info Chapter #2 start at 4:59.716
8/12/2007 12:53:09 AM info Stream #1 Sync. delay : 0.00 ms
8/12/2007 12:53:09 AM info Stream #0 Sync. delay : 0.00 ms
8/12/2007 12:53:09 AM info Output Stream#1 - Audio: ac3, 48000 Hz, stereo, 192 kb/s, no automatic gain control
8/12/2007 12:53:09 AM info Output Stream#0 - Video: mpeg2video, yuv420p, 720x480, q=1-31, 5080 kb/s
8/12/2007 12:53:09 AM info Video Stream #0 Pulldown : 23.976 -> 29.97 Fps
8/12/2007 12:53:09 AM info Image processing: Fast bilinear resampler (720480)->(720432)
8/12/2007 12:53:09 AM info Image processing: Pad (Left:0 - Top:24 - Right:0 - Bottom:24)
8/12/2007 12:53:09 AM info Image processing: Deinterleave (720480)
8/12/2007 12:53:09 AM info Video source original frame rate: 23.98
8/12/2007 12:53:09 AM info Output resolution: FULL D1 [720
480]
8/12/2007 12:53:09 AM info NTSC 29.97 FPS output format set by user
8/12/2007 12:53:09 AM info Fullscreen (4:3) set by user
8/12/2007 12:53:08 AM info Video bitrate 0/5080/8808 Kbps (min/avg/max)
8/12/2007 12:53:08 AM info Converting “C:\Documents and Settings\Owner\Desktop\Fresh.avi”
8/12/2007 12:53:08 AM info ----------------Title #1----------------
8/12/2007 12:53:08 AM info Project size 4.3 Gb. (159 Mb. audio - 4.13 Gb. video)
8/12/2007 12:53:08 AM info Stream #1 - Audio: mp3, 48000 Hz, stereo, 128 kb/s
8/12/2007 12:53:08 AM info Stream #0 - Video: mpeg4, yuv420p, 720x480
8/12/2007 12:53:08 AM info 2 Stream(s) found - est. duration 01:54:05.422
8/12/2007 12:53:08 AM info Opening file “C:\Documents and Settings\Owner\Desktop\Fresh.avi”
8/12/2007 12:53:08 AM info New media inserted. Burning layer is ready to write
8/12/2007 12:53:08 AM info [X] Don’t fix audio gaps
8/12/2007 12:53:08 AM info [ ] Engine Log
8/12/2007 12:53:08 AM info Encoder quality: 100%
8/12/2007 12:53:08 AM info --------------Encoding begin--------------
8/12/2007 12:53:08 AM info --------------Menu settings end--------------
8/12/2007 12:53:08 AM info [X] Sequential playback
8/12/2007 12:53:08 AM info [X] Loop playback
8/12/2007 12:53:08 AM info [ ] Auto start playback
8/12/2007 12:53:08 AM info [X] Menu
8/12/2007 12:53:08 AM info --------------Menu settings begin--------------
8/12/2007 12:53:08 AM info --------------Default burn settings end--------------
8/12/2007 12:53:08 AM info Default speed selected: 8x
8/12/2007 12:53:08 AM info Compatible media types : DVD-R, DVD-RW Seq., DVD-RW RO, DVD+R, DVD+RW, CD-R, CD-RW, DL DVD+R, DL DVD-R
8/12/2007 12:53:08 AM info New Drive selected : 1:0:0 - PIONEER DVD-RW DVR-111D 1.23 [E] (Ide)
8/12/2007 12:53:08 AM info [ ] Delete files after burn complete
8/12/2007 12:53:08 AM info [ ] Don’t eject after burn complete
8/12/2007 12:53:08 AM info [ ] Prefer SAO for DVD-R
8/12/2007 12:53:08 AM info [ ] Include originals
8/12/2007 12:53:08 AM info [X] Burn result to DVD
8/12/2007 12:53:08 AM info --------------Default burn settings begin--------------
8/12/2007 12:53:00 AM info New media inserted. Burning layer is ready to write
8/12/2007 12:52:32 AM info Media removed. Burning layer not ready to write
8/12/2007 12:51:06 AM info New media inserted. Burning layer is ready to write
8/12/2007 12:51:02 AM info User default language : 1033 (0x0409h) - English (United States)
8/12/2007 12:51:02 AM info System default language : 1033 (0x0409h) - English (United States)
8/12/2007 12:51:02 AM info Version 2.2.3.258
8/12/2007 12:51:02 AM info ExeName : “C:\Program Files\VSO\ConvertXtoDVD\ConvertXtoDvd.exe”
8/12/2007 12:51:02 AM info OS : Microsoft Windows XP Personal Service Pack 2 (Build 2600)
8/12/2007 12:50:57 AM info ******************** Report session started ********************