It would be a no-brainer to use the WMV format in conjunction with Movie maker.
High-quality is directly proportional to bitrate. No matter what format you use, if there is not enough bitrate it won't look good. Increasing the bitrate improves final quality, in any format.
The built in WMV DVD profiles are already set nicely for creating DVD's and, of all the output formats, these can be tweaked to your preference. Dafydd has tutorials on doing just that.
For example, I created some WMV profiles for uploading to youtube with minimum bitrate that would still yield an HD presentation. I use this for lower quality stuff. You could easily tune settings for your DVD creations and Movie Maker will love using them in WMV format.
This message was edited 1 time. Last update was at Jan 25. 2009 12:44
Win8 64-bit Pro Retail
Intel i7-4770
16GB DDR3 1600 8-8-8-24
MSI Z87-G45 Motherboard
ASUS GTX 660 Direct CU II OC 2GB GPU
1 TB RAID 1 (mirrored) Drive Array
Several scratch drives for video, TMP, pagefile.