The best way to get good quality in your finished product is to make sure you get the absolute best possible quality in your source footage. That means the clips you're importing into wmm - aka, huffyuv or uncompressed footage. I don't recognize those converters, but I'd be willing to bet you're not working with huffyuv or uncompressed footage (probably xvid/divx or mpg) - that will kill your quality from the start so you can forget about improving the end result. If you haven't, read the guides on how to rip your dvds. All the programs they tell you to use can be downloaded for free off the internet, so you won't have to spend a penny.
http://www.animemusicvideos.org/guides/ ... ogetb.html
Read through that and try the dvd-huffyuv method, aka DVDDecryptor, DVD2AVI, Avisynth script, VirtualDub - that should get you large but great looking huffyuv clips to edit with.
Once you have the best possible source quality, work on your encoding. If you're using wmm 2.0, try the avi option - if it sounds funny (with skips in the audio), then use the 'high quality video large' wmv option. Take that wmv into TMPGEnc (a link to this mpg encoder is in the guides - under 'compressing your video'). Use the 'noise reduction' filter on that wmv and chances are you'll get a nice looking vid at a reasonable file size - and people tend to like playing mpgs more than wmv.