This is not a HD video camera so it will be less that expected quality HOWEVER since you claim you want it on DVD we have a lot of questions to ask.
Since the .MOD might play in VLC PLAYER did you need to just play them off the DVD or were you thinking of creating a "Video DVD" which is indeed something of a standard.
But before we start, this is not even a 480p camcorder. It's 480i.
http://gdlp01.c-wss.com/gds/7/0300004607/01/FS40_FS400_IM_N_EN.pdf makes no mention of how to create a VIDEO DVD from this product except on page 120 using a DVD recorder.
The sharpest playback should be with VLC PLAYER on your PC or Apple.