So I think my problem may lie within my FCP settings. I have a Express version right now and its limiting me in menu options. After further review the video looks good when I open the files in Quicktime but once they are in FCP they seem to be of #### rez. Thanks for your feedback on this issue I am going to upgrade to a full version of FCP and also start converting to Apple ProRez so I dont have to render ever other move.
Im having some great results with the video otherwise. Looking forward to learning more about this camera and DV all together.
Will post something when I have something to post.