Having issues exporting video which originated from a Sony Handicam

Hey all,

I have some video that I imported from my Sony Handycam DCR-SR100 onto my mac for editing on Final Cut Pro. When I go to export the film, the quality turns up very poor. I lack a lot of knowledge in compression and well a lot of the tinkering required to get the best possible output. Does anyone have any recommendations or know of any solution?

I used to use Sony Vegas and the film quality came out great every time. Am I banished back to Vegas until I can get a good camera?

A bit of background about the film:
Dimensions 720 x 404 (for some reason)
Codecs: MPEG2 muxed

Please let me know if you need any additional specs or have any questions. I'm a bit of an amateur videographer and editor, but I can navigate the software well enough.

Thanks in advance to whomever can help