In my experience, the black edge round one side of the FG in a comp is an artifact of the various deartifacting techniqes discussed above and not an artifact of the 4:2:0 (or 4:1:1) compression. DV compression results in blocky edges to the matte.
These deartifacting techniques fix the blocky matte problem but create a dark line instead. The lesson to be learnt is that DV is not suitable for visual effects work.
You might want to try this as a dirty fix:
REPLACE_WITH_FOOTAGE = ColorWheel(720, 576, 2, 0, 1, 1, 1);
ADJUST_ME = Brightness(REPLACE_WITH_FOOTAGE, 1.5);
Reorder1 = Reorder(REPLACE_WITH_FOOTAGE, "aaan");
DilateErode3 = DilateErode(Reorder1, "rgb", 1, xPixels/GetDefaultAspect(),
0, 0, 0);
Emboss1 = Emboss(DilateErode3, 10, 180, 0);
Expand1 = Expand(Emboss1, 0, 0, 0, 0, 0.6875, 0.6875, 0.6875,
1);
DilateErode2 = DilateErode(Expand1, "rgba", 2.5, xPixels/GetDefaultAspect(),
0, 1, 0.625);
Blur4 = Blur(DilateErode2, 12, xPixels/GetDefaultAspect(), 0,
"gauss", xFilter, "r");
ISub1 = ISub(Blur4, Reorder1, 1, 100);
KeyMix1 = KeyMix(REPLACE_WITH_FOOTAGE, ADJUST_ME, ISub1, 1, "R",
100, 0);