Advice on sequence settings - frame size for VHS video in FCP

Hello,
I was hoping that I could get some advice on editing and output for video captured from VHS Tapes to ensure the best quality possible.
My current workflow to digitize the VHS tapes is:
VHS signal from JVC S7600u with TBC into ADVC 300 (no de-interlace or other filters set) into a Mac Pro via firewire.  Capture preset in FCP is DV NTSC 48khz.
Once in FCP - the captured VHS video frame size is 720 X 480, Vid rate is 29.97, pixel aspect is NTSC-CCIR 601 and field dominance is lower (even)
My questions are:
If my final destination is for You Tube sharing , are these the best sequence/ frame size settings or should I convert the sequence frame size to 640 X 480, or should I leave at 720 X 480 while working in FCP and then output to Compressor and select the H264 you tube sharing video setting and change the frame size to 640 X 480? 
Should I de- interlace for internet/youtube destination?
Should I de-interlace for DVD/TV destination?
If I want to burn the finished project to DVD and watch the video on a progressive montitor/ TV screen, what would be the best settings/frame size for that?
If any of you out there have experience with editing vcr/analog video in FCP and have a good workflow to ensure best quality, I would really appreciate  any advice/suggestions.
Thanks in advance.

Digitize to 720X480 frame size in FCP. In compressor, your YouTube preset will automatically deinterlace and a square pixel aspect ratio.No deinterlacing for DVD.
Russ

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