Down Convert Questions

Hey gang,
So, I'v noticed quite a few complaints people have been having with compressing HD footage for SD DVD using the latest version of Compressor. Unfortunately, I have recently discovered similar issues and was just hoping to get some input on the best way to work around the poor quality exports from Compressor.
Currently, I'm working on a 20 minute short film that was shot on a Panasonic HVX200 in 1080i. I much prefer using 720p when shooting on the HVX, but I wasn't the DP in this scenario. Just to clarify, the footage is 1920x1080 and 23.98 fps. We edited in FCP, color corrected (and de-interlaced) in color, and have been attempting to export to DVD.
The compressions we've done so far look pretty terrible. Not noticing too much aliasing, but there's some sort of awful looking moire/artifacting going on in the very deep blacks. This is a black and white film, so that really becomes distracting. In doing my research here, it looks this is just an unavoidable result of using the new Compressor, so I'm trying to narrow down my options.
It seems that the first solution is to try adjusting the frame controls to achieve better quality while resizing, although I see that while this drastically increases compression time, the improvement may be marginal at best. I'm wondering if it would possibly be better for me to nest the sequence in FCP and resize it there before I compress it for DVD? Is that the dumbest idea ever?
The other possible solution I had would be to export a full-res QT of the film (I don't even want to think about how long that will take), and then compress that with an older version of Compressor that I have access to. I would like to just export a reference QT ( i.e. a version that is not self-contained) of the film, but I wasn't sure if an older version of Compressor (the version that came with FCS2) would be able to work with a reference QT exported from the newer version of FCP. Do reference QTs follow the same backwards compatibility restrictions as FC files? This is a process that I would like to avoid, but if the results are much better it might be worth it.
I know you guys are probably sick of dealing with this question over and over, but any input you could provide would be greatly appreciated.
Thanks in advance!

MrMadCow13 wrote:
Currently, I'm working on a 20 minute short film that was shot on a Panasonic HVX200 in 1080i. I much prefer using 720p when shooting on the HVX, but I wasn't the DP in this scenario. Just to clarify, the footage is 1920x1080 and 23.98 fps. We edited in FCP, color corrected (and de-interlaced) in color, and have been attempting to export to DVD.
Why De-interlace a progressive sequence?
Do reference QTs follow the same backwards compatibility restrictions as FC files?
Not if your opening then with some other program. The backward compatibility issue is form Final Cut (newer) to Final Cut (older).
o| TOnyTOny |o

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