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Have you set the highest resolution for the preview pane? You can do this by:

1. click on the video clip in the timeline,
2. select the "Snapshot / Video Quality" button next to the fast forward button,
3. select "High Preview Resolution" from the three options in the drop down list.

This should provide the same quality as viewing the video from the "Media Pane".
From experience, I completely endorse that advice.

I have an NTSC HD camera and live in Australia which has PAL as the local TV standard.

After many attempts to convert NTSC to PAL (and vice versa) I realised the loss in quality and jumpy video due to different frame rates was not worth it. PAL is 25 frames per second, whilst NTSC is 30 fps.

Any conversion between the two generally is a poor compromise with a loss in quality.
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