How to improve capture quality in DV handycam?

Hi,
I use a Sony TRV22E handycam for shooting my videos. the video quality is excellent when i play it directly from the handycam to TV.
I use Ulead VideoStudio and the USB port to capture video from the Handycam to PC and finally make VCD with it.
the problem is the video qulaity degrades progressively in every stage of capturing. the captured video when seen in PC is of inferior quality than the original video. and when i make the vcd finally - i just cry seeing the video.
is there any way to improve the capture quality? also even after capturing why the quality of the final VCD further degrades?

any suggestion guys?

Thanks and regards

__________
Arup
 
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