Hi:
First off, "i" stands for interlaced while "p" means progressive (
http://www.axis.com/products/video/camera/progressive_scan.htm).
The Mbps, megabits per second, figure is the data flow bitrate and yes, presumably, the higher this value, the better image quality. It could be useful to look at this in your source files. (However, you'll have to do this outside PowerDirector. The other day, I got a recommendation on this forum to use Splash Lite video player, which can show the video bitrate.) I think that PowerDirector can increase the bitrate but I doubt the image quality is actually very much increased by this.
I don't know any exact numbers but I suppose YouTube downgrades the image quality if it's too high. You might simply want to experiment with a short video and produce it using different profiles.
Have you considered using the YouTube upload feature in PowerDirector? A wmv file is produced in this process. Hopefully Cyberlink engineers optimized this choice from the quality and production time's points of view...