>default video settings on the camcorder
1st Q would be... what settings are you using?
2nd Q is... is that a DV tape camera? (for those who don't use that camera)
If that is a DV tape camera that you connect via Firewire to transfer the video to your computer, and you have a project that correctly matches the video, there is really nothing you can do to make a "sharper" image on the DVD
There are various effects you might try (you will need to do your own testing with effects, to find an effect that gives what you consider to be a "sharper" image) but you can't make HD out of SD
>image as close to HD
HD is "about" 4 times the resolution of SD... example picture in http://forums.adobe.com/thread/1120039