Why does this look so bad?

[fr0sty]

Can anyone explain to me why this looks so bad? Maybe its because the dvd is older or something? ANy tips to improve on this?

http://rapidshare.com/files/7621546/sample1.avi.html

Thanks.

EDIT. I can upload sample somehwere else if needed.

[freelock7]

Not so bad.
But i don't know your source.
Compare them to see difference.
You could increase the bitrate average around 900kbs and do a 2 pass encoding for a better quality.
Anyway, this job doesn't have anything abnormal.

[fr0sty]

Ahh so you think its looks ok then. Thats good but i'll still try what you have suggested! Thanks for the reply!