How to upload HD videos to youtube without losing quality?

I've tried many things but none work! Ok so first i tried using windows live movie maker and selecting 1080p upload to youtube but that doesn't work then i tried using cyberlink power director ten but that didn't work, next i tried using sony vegas pro and rendering in the highest setting but that still uploads poorly and gives me this:
i know there's a button where viewers can select to watch in 1080p, but alot of other youtubers have their videos play so crisp and cleer automatically and don't require you to change anything. I'm using a Nikon D5000 for recording and its very nice and cleer when i put the file on my cp but after i render and select the upload button on youtube n upload the file it gets all bluury and distorted. Is there a program i can use or something i'm doing wrong?!

Rather than upload directly from the program, save the video to your computer and then upload it from there. When you upload directly from the program the project is double-rendered: first by your video editing program and then it goes through all the filtering and processing getting into YouTube. I've always gotten better quality by saving to my computer first.

Also, there are custom HD profiles you can install in any version of Movie Maker. I ran a little experiment for another Asker this afternoon. I made a 10 sec clip and saved it using 2 profiles included with WLMM, 2 HD profiles I installed and 1 HD WMV clip I converted to HD MP4 (H264) because it uploads to YouTube faster. I uploaded all of them to YouTube to see which ones would be HD and which HD uploads had the best quality. Here are my results:
1. HD uploads. All of them except the Burn DVD profile uploaded as HD files.

2. I used a busy clip and it was hard to tell which one has the best quality. Everytime I look at them I think a different one is better. I'm leaning toward the WMV-HD being best quality. Here are the links to the HD clips. You should make a short clip with your camera and run your own test based on the original quality of your own HD videos.

Here's video I made showing how to get and to install the HD profiles (the second download site).

Begin at 2:00. Profiles are version-independent and can be used in any version of Movie Maker.

Note: the quality of your Oct 3 upload looks better than the quality of the Oct 15 upload. Could it be the lens you're using? Are you using AF or manual focusing? If the camera is close to your face, the AF might be "off". None of our faces are flat like a piece of paper so the AF might be focusing on a part of your face and throwing the rest of it slightly out of focus (does this make sense?

Video using the highest quality settings and experiment a little with AF and Metering Modes if you're not using manual settings.