Best compression for iDVD authoring and DVD playback?

I have some DV footage that I had captured into MPEG-2 files on my old PC, then recently got a Mac and I want to be able to edit the footage on the Mac software I have and put it onto DVD for standard playback on a TV.
I've got the latest Quicktime Pro with the MPEG-2 playback component, and MPEG Streamline that allows me to convert the MPEG-2 files into MOV files. I want to be able to edit them in iMovie and Final Cut Express, and then I want to drop them into iDVD.
I would like to know what the best compression to use would be in converting the MPEG-2 files into MOV files or other format that's compatible with iMovie and Final Cut Express that will result in the best quality for DVD playback. I don't have Final Cut Pro so I don't have Compressor, which I understand, already has a preset compression optimized for DVD authoring and playback later on.

So you have some already mpg-2 compressed files you want to edit in FCE. Using MPEG Streamclip, I suggest you convert them to DV video (which runs about 13 GB per hour) to work on them in FCE.
As far as recompressing the edited video, I really doubt the mpg-2 encoding mode used will make much difference since you took the real quality hit when you initially mpg-2 compressed to content.
If you want to take the additional time required, you can try the new 'Professional Encoding' option in iDVD 7, but I seriously doubt it will improve anything. (You know the old 'silk purse out of a sow's ear' thing...)

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    Please disregard my first reply. After re-reading the original question I rethought my answer and tried to edit, but I ran out of time. Here's my better response:
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