Converting NTSC to PAL with chapter markers

Hey guys,
I have just a quick question.
I am making a home made video. I did all the editing in FCP and made a great DVD in iDVD. I would like to do the same thing in PAL format so I can send it to my parents in Europe. My original footage is in NTSC. I did my own research and tried using compressor to change format to PAL.
I tried several different settings (PAL DV, Mpeg 2 PAL) but the outcome movie is always missing chapter markers.
I also tried to import the PAL movie (after conversion in Compressor) to FCP and added chapter markers but did not work.
Does anybody know how to convert the format from NTSC to PAL and keep the chapter markers at the same time? I would like to mantain as high quality as possible.
Thanks for your help.
iMac G5 Intel Core Duo   Mac OS X (10.4.8)  
iMac G5 Intel Core Duo   Mac OS X (10.4.8)  

Well, this seemed to work. However, being completely new to converting to PAL, I was surprised to see the "jumpiness" that goes along with the frame rate drop. Looking at it taxes the eyes as it seems like its dropping frames every so often. I realize, through more research that this is due to the 25 FPS nature of PAL plus the fact that I'm converting and not just authoring from PAL material. Having said this, is there a tried and true way of "smoothing" this jumpiness that anyone would share?
A friend of mine suggested that when I place the file into DVDSP, I choose the TOP field in the encoding tab, prior to burning the disk. In the past I have always left the FIELD menu set at Auto. He says that setting it to TOP might help a little.
He also told me that a lot of the software based converters don't do the best of jobs. Although acceptable results may come from tweaking the settings, the best way to convert NTSC to PAL (with the most pleasing results) is by using a very high end converter (not a computer). Although you have to weigh out the circumstances such as how many disks will eventually be converted compared to available budget, is it worth spending a little extra for a master that will ultimately see 1,000 copies?
I'm planning on showing my client the burn with field dominance set to TOP, on Monday. Hopefully she'll find it acceptable and I'll be able to move on with this project. Thanks for all the help!
Steve
Power Mac, G5   Mac OS X (10.4.6)  

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