Jerky movement

I have a Panasonic VDR-D300. The DVDs right out of the camera play nicley on the big screen. I want to edit the dvds and combine them with other to create a movie.
I am using Premier 3.0 for editing.
I am generally recording in VR mode on the Panasonic so the file on the disk is called *.VRO.
I found I could rename tis to *.VOB and Premier could read the file.
The odd thing is premeier, when using properties on the VOB/VRO file, indicates the file is 704x480, not the 720x480 I would expect.
The frame rate is 29.97.

Now when I burn from premeier to a new dvd the results look bad.
Movment on the screen is very jerky and there is pixel noise around fast moving objects.
I found using Nero to first convert to MPEGS (now 720x480) the movement is not so jerky.
Does anyone know why this happens, I am trying to minimize file conversion as each one is lossy.

You need to be using a software, specifically designed for MPEG2 editing… Take a look at womble mpeg software… Right in the Adobe faqs, it states that your results will vary with mpeg2 files.