Hi Scott,
I think the video quality of the DVD burned by PowerDirector is awesome. Click on some of the burning options to make sure you are burning in High Quality (I don't have the software in front of me to detail the exact steps).
The Produce function is used to create video files for different purposes. I use this function to upload videos to YouTube and SeeMyWorld websites. I also use this to create high-def video files. PowerDirector does not burn to a Blu-ray burner, so you have to produce a file in PowerDirector, then load the file into PowerProducer for burning to Blu-ray.
Brady