Does iDVD actually convert NTSC/PAL?

I was just dozing on the bed and had a moment of clarity...
Well, I've recently got a new iMac and got into this DVD thing I shoot movies of my family and send them back home on DVD. I'm in Japan (NTSC) and the family's back in England (PAL). My camera and iMac are all Japanese-bought.
I put my movies into iMovie then iDVD. I've made 3 or 4 movies so far. What I've been doing is rather troublesome, actually, but I've put the movies through to iDVD twice. The first time with iDVD preferences set to NTSC (my copy), then set to PAL (family's copy). This requires setting up the DVD menus, etc., twice in iDVD. Well, it's two completely different projects. A drag. Intuitively I feel this is wrong or unneccessary, so part of my query is whether this is necessary?
I've only had feedback on one movie so far - the first one. For that one I sent both an NTSC and PAL version back to see which worked or were better, etc., as I don't really understand the technology yet. Now according to my brother there was no difference between them (obviously he can play NTSC on his PAL player).
I've made a few more and sent PAL for the simple reason that England is a PAL country...
Then this 'moment of clarity' I just had was: that option in iDVD to set between NTSC and PAL, is that only to reflect the original tape and NOT to convert?? Have I, in fact, been sending NTSC DVDs only?? Or does it tell iDVD to convert to PAL when I send it an NTSC iMovie?
If it DOESN'T convert, that would explain why both were the same on my brother's player. In that case, does that mean I can only send inferior quality DVDs (I'm assuming PAL plays better than NTSC on a PAL player)?
On the other hand, the fact that they appear the same could be simply that the quality of both is not so good (the movies are just under an hour, with transitions and a little music).
Sorry, bit rambling, but I have a lot to learn, especially if I want to ensure my family get a good record of our lives here.
I remember when digital watches and calculators first became available. That was the height of technology. People were happier then...
Thanks in advance for any info and advice.
James
PS please reply as to an idiot

IDVD uses different templates depending on which format you choose. PAL and NTSC are different formats, not only in frame size, but color resolution, and frame rate.
Yes, PAL is superior to NTSC. However, some regions of the world can only play NTSC, others PAL... some can play both formats.
You must specify the format BEFORE starting a new iDVD project because you can change that setting over and over again after having started a project and it will actually only use the setting that it was set to when the new project was started. As in, change your video standard preference, then File > New... not the other way around.
As for transcoding... many apps do transcode, but by mistake, not by design. What I mean is, if you take NTSC footage (720x480 29.97 FPS Non-square pixels) and tell it to output it as PAL footage (720x576 25 FPS Square pixels), it will. It will convert it by stretching the pixels vertically and reducing the frame rate. Most may not even be able to notice the difference, especially when viewed on an analog device such as a TV... it might be more apparent on a digital device such as a computer. Another example would be to take a 320x240 Quicktime move and then add it to iDVD directly. It will stretch the content to fit the format that you have chosen. Now there is a drastic change in viewing quality because there was a drastic change in frame size. PAL and NTSC are quite close to one another by comparison.
All in all, you should shoot in PAL if you wish to output PAL DVDs and conversely shoot in NTSC if you wish to output NTSC DVDs. This will result in the best outcome.
NTSC is jokingly referred to as Never Twice the Same Color... meaning that NTSC has some of the worst color rendering out there. It is one of the primary reasons why the U.S. is FINALLY switching to HD... to say goodbye to the archaic format that has existed in the U.S. for well over 50 years. PAL too is going away. Cheer the arrival of HD... it is superior to both PAL and NTSC on a grand scale.

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