Well...it appears that the only way I was able to get a decent MP4 is to produce the video as an MPEG2 at 1920 x 1080, then run the resulting MPEG (that does not seem to play because it evidently needs a different codec), through Videora for the conversion into MP4.
The resulting file looks amazingly clear for an MP4.
Funny though...One of the reasons I bought PD7 was the the ability to save directly to iPod (MP4) format, hence eliminating a step, however the quality of the resulting MP4 saved from PD7 is SOOOO poor, I am back to having to take the extra step to have a decent video.
Anyone have a better Idea for getting a decent quality MP4?