Sony DCR-PC330 Indoor Performance

I had been using a Sony DCR-TRV33 for shooting in a fairly small room which to the naked eye seems pretty well lit (3 100 watt bulbs). Because much of the time the camera faces a window, I found that using the backlight function worked well. Other than that, all settings were automatic. I found the video quality to be pretty good in terms of color, brightness and crispness of detail. However in an effort to improve on the video quality I purchased a Sony DCR-PC330. Setting this camcorder up in the same way as the TRV33 produced decidedly inferior results with the colors very washed out. By adjusting the white balance to the "Indoor" setting , the colors improved dramatically and pretty much match those of the much cheaper TRV33. However, so far I find that the overall video quality in terms of clarity and detail is slightly less good with the PC330 compared to the TRV33 instead of the big improvement that I expected. I noticed that the PC330 has an additional settind called "Sharpness" which is not present on the TRV33.What is this and how does it relate to focus? Any other ideas?