What is the best way to burn to disk in Encore?? (without using the Blu-ray option)

I am trying to put together a video for my sister (who lives in the UK) of her wedding, that she can watch on her dvd/blu-ray player as a movie with scenes and menus. So, initally, I am using Encore to create menus/scenes and prior to this, used premiere pro to edit sequences and chop up/edit the video. I realise that while i am in premiere pro, I can queue it up and have the option to change the format of my files to AVI, MPEG, H.264 etc to maximise the best quality. I then take that file (or files) and bring them into encore and begin creating my scenes and menus.
Once i am happy with the final result, I then aim to burn this to a disc where i can then send it to her so that she and her newly wed hubby can invite their friends/family around to their place and remember that fabulous day together. Where i am getting stuck is when it comes to burning that file using encore as it only offers to build the project for DVD or Blu-ray. Since i dont have a blu-ray burner, it seems that my only option is to select DVD. Obviously DVD is SD and the resolution for this is 720*480. This doesnt work for me, because once i burn it to dvd, i lose almost half the quality of the original video. I have a few questions here that hopefuly someone can help me with:
1. Whats the point of encoding the timeline in premiere pro to a really high quality file such as H.264 if encore only offers DVD, Blu-ray or Flash? (I mean, why have this if you only have a dvd burner?)
2. Since i dont have a blu-ray burner, is there another way around taking my high res movie and putting it onto a DVD without loss of quality? 
3. Is there any other possible way (or settings to use) before burning it to a dvd that i could tweak to avaoid loss of quality?
4. Should i perhaps be using some other way, rather than trying to create an ISO file in encore that will allow me to put this file on a dvd, which will still have a scenes and menu titles? (Meaning, so that it is just not an avi file sitting on a dvd, but rather it actually looks like a movie, with scenes, music in the background etc)?
Feel free to check out the orginial movie i cut up in post production at the link belwo. i did not shoot this vidoe so i am unsure as to what video camera was being used. All i was told, is that it was a fairly modern one (2012 i think). My sister merely sent me all the video and pictures and i just edited it in premiere pro, and now want to send it back to her in a format/way that she can watch it on her television with options to jump to scenes, just like when you watch a dvd movie at home.
Here is the link - https://vimeo.com/71008272
Thanks for your help guys. 

No, you can't burn a DVD with HD resolution files and have DVD or similar style navigation.
The solution is to buy a bluray burner.
The workaround is to create an HD version of the files in Premiere, but for the future. In the meantime, export MPEG2-DVD from Premiere, and use those in Encore for this project. During the export from Premiere is where you downrez and lose quality. Your sister should play this back on a player that supports upscaling.

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