Best workflow to get good DVD from edited HDV

I have created a beautiful Blu-ray disc using the follwing workflow:
1. HDV tape
2. PE4 to edit.
3. PE4 output HD 1080i 30 creating mts files
3. Unwrap mts files to MPEG2 files with MPEG streamclip
4. Author and burn a Blu-ray disk using a group of these files using TMPGEnc AuthoringWorks 4
Results are great.
Now I need a workflow for DVD's. Simply having PE4 output to NTSC DVD Widescreen instead of HD 1080i, yields very poor results. I have read there are interlace issues and PE is not good at down conversion.
Is there some other path using PE4 or some other software operating on the output of PE4 (for example the HD 1080i MPEG2 files)?

Well from comments from over on Muvipix it would appear PE7 does a better job of exporting to standard definition DVD. A few folks have done comparisions and concluded that with PE7 the quality of burning a standard DVD from a high definition timeline is the same as using the downconvert in camera that Steve recommeded.
Also CS4 is reportly better at down converting to standard definition compared to earlier versions. I use Vegas Pro and get good results, although I dont do many down conversions as I mainly use a high definition workflow from import to export/burning.

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