Can anyone help me about converting AVI to MPEG? Because everytime I tried the result seems a bit blur.

To capture DV I use a Pinnaclesys IEEE1394 card with StudioDV 7.01 software. After I make several editing, I tried to convert to MPEG with option VCD 352x248 Resolution, 1100 bitrate. But the MPEG is blur.
I want to make VCD like the original VCD resolution.

Please help me.