quality loss and sizing problem

Hi guys

I am new to the creative suite 3. I produce swf adverts which play on a 32"
widescreen at 1280x720. Occasionally I have to put these swfs in a showreel and
burn to dvd to play via a set top dvd player (PAL). My problem is twofold:

1. when i export the fla's as avi's the quality is perfect, but once burned to
dvd it is poor

2. I cannot get the dvd to fit the 32" screen - it always
"letterboxes"

I realise that the aspect of a dvd is set to 720x460, but ids there any way I
can created high quality dvds to play on the 32" widescreen, without going
to blu-ray?