Trouble Exporting to DVD from Adobe Premiere CS3: Quality is Aweful!

I've used Adobe Premiere CS3 to edit a feature-length film. It's 1080p (1440x1080) 9x16 aspect ratio with a frame rate of 23.976

Now I'm trying to write it to DVD using Encore CS3, but I keep getting a horrible quality! If I just write out a video file that's computer readable like an Mpeg it looks great! But when I try to put it into DVD it looks milky With colors and contrast being distorted further there are no sharp edges to anything. This is probably partially due to the fact that it always frame blends!

How can I make a good looking DVD?

I've tried the export to Encore from with in Premiere. I made I changed the settings such as frame rate: 23.976 and set it to progressive. I also turned the quality up to 5 and and put the bit rate settings up to max, but that still looked bad.

I've tried exporting the video to Just an Mpeg and setting all those same setting then importing it to Encore. I was told if I did that and then disabled transcoding that would do. Problem is I couldn't get it to disable transcoding!

Also further problem. When I open Encore and open a new project Once I've selected the authoring mode: as DVD, I only get the options of PAL or NTSC, but the framerates are disabled! So if I pick PAL, I have to use 25i or NTSC: 29.97i. I need a progressive DVD not an interlaced DVD!

How do I get Encore or Premiere to create a decent DVD?

Should I export from Premiere and use a third party DVD mastering software? Is there anything Decent out there?