Closed captioning issues DVD studio Pro and workflow

So I have been trying to attach a .scc file to a dvd for the optioin of closed captioning. (for 2 dyas now)  I did figure out a workflow to make it happen but all the suggested workflows online and in the book did not work for me and I have no idea why.
I have a HD sequence 1440x1080.  It has some old SD video in it as well. 
The only way I was able to get a DVD with closed captioning was this workflow:
Go to HD sequence and select all in timeline so it is highlighted.  Command (apple) C so it is copied.
Go to File> New Sequence.
Control click on new sequence and go to settings.
under general tab make sure that it is set to  720x480 with NTSC (3:2) chosen from the drop down menu
Pixel aspect is set to NTSC CCIR 601/DV and that anamorphic IS checked
dominance : lower (even)
frame rate 29:97
QT vid settings DV/DVCPRO-NTSC
audio 48 khz 16-bit channel grouped.
click OK
Then open SD sequence and command (apple) V to paste. 
At this point I noticed that the SD video on the new SD timeline was expanded or blown up.  I had to control click each SD shot in the timeline (or do one at a time) and control click> remove attributes.  It gave me a few options to click and when those in dark font are clicked it will set your SD shots back to normal.
I tried Hightlighting the entire SD seauence and changing the attributes, but it effected the HD video also so it was easier to just adjust the SD shots in the SD timeline/sequence.
Now that everything was normal in my SD sequence, I exported out a QT video.
I opened up DVD Studio Pro and put my QT file in it.  Went to DVD Studio Pro preferences in the top left corner and made sure that MPEG-2 SD tab was open
clicked 4:3 aspect ratio
Start was 00:00:00  etc.
and for me drop frame was clicked. (my video was shot drop framed)
click OK
Click Graphical view (or in outline view it would be tracks and video name) Click on Green "TV" looking  item (for me I wanted the first play on it)
Then look in your inspector for the tab called "other"
Click on "other" tab and then where it says file.... click on choose.  Navigate to where your .scc file is and hit ok
Burn your DVD and test it in QT and on a DVD player/TV to make sure the CC optioin turns off and on.
That is how I got it to work, but it was changed to a DV format and has some pixelation. 
I read where many folks run their exported QT file from FCP in HD and open it in compressor and change it's size there and make a mpeg 2..Some send the video to compressor from the timeline to make a mpeg 2... some add the .scc file in compressor.... some run their SD file through compressor and change to mpeg 2.  Personally I had NO LUCK in doing anything in compressor (after running 2 days of tests) converting to a mpeg 2 in the DVD folder settings,... in using any of the program and elementary streams under the formats folder.  NOTHING worked with any type of mpeg 2  AS well as adding the .scc file to the video in either compressor or in DVD studio Pro.
WHY?  Why did none of that compressor workflow work?  Why didn't adding the .scc file work in DVD studio pro?
Anyone have any ideas?

You have two problems.
Converting your video to SD
Getting the .scc file to play nice
1st problem
I would export your HD sequence(self contained not QT conversion).
Many recommend and have had much success using Compressor to do the down convert(frame controls all set to best).
I prefer using FC to do the down convert. I find it more consistent. This adds a step but still prefer it. I re-import the HD file I just exported into my project and then create an appropriate SD sequuence.  Since your HD sequence displays 16x9 you will want to create a SD anamorphic sequence (I do 720x486 but you can do 480 too). Add the HD file to the new SD seq and then render. Export an SD file and then convert for DVD.
2nd problem
I have not had success adding the .scc file in Compressor. It should work but OE and/or other factors have never allowed me to get this to work properly.
The .scc file is presumably made from your sequence time code or possibly the QT export TC depending on how you sent it out and what you got back. The .scc should be based on the sequence TC. By default tracks in DSP are set to zero based TC which will not reference the TC associated with the original sequence TC which was used to make your .scc file. You can change this by right-clicking(control-click) on the time area in the track and you should see an option for asset-based timecode. Once you have changed this try importing the scc file.

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