DV cam to DVD - does it get transcoded to H.264 in the process now??

I use a DV camcorder and after importing and editing in iMovie 08 I want to make a DVD.
When exporting to the media browser - using "large" - this is what the help viewer says:
"Large: Always 960 by 540 pixels (widescreen). No large size is rendered if your original video isn’t high definition (HD)."
"H.264: The standard video compression that's used in the movie."
...but then I want to make a DVD.
QUESTION: Does iDVD transcode from the rather small H.264 file, or does it encode from the source DV files?
Surely an in-between step degrades the final result. But this seems to be the workflow. Am I wrong?

Thanks, I figured it out. Strange though that the Help viewer says choose the project from the media browser. What is it that you choose exactly? The source format or the transcoded iMovie 08 "large" format? The difference is highly significant!
Also - get this: All my DV clips is in a project subfolder under the folder "iMovie Events". Opening them in QuickTime reveals they are unaltered, they are 25 fps PAL 720 x 576 widescreen. But going into the project in iMovie 08 and exporting as QuickTime DV stream - it says 960 x 540 is "current" size, saving as 960 x 540 will be "unscaled". What gives? All the clips are 720 x 540 and the project file is just 6 MB because it doesn't contain a rendered movie yet. It's just the source clips. How can it say 960 x 540 is "current"?
I fear iMovie 08 transcodes and scales even if I don't want it to...
Can someone verify a way to edit DV streams and then exporting them with unaltered resolution?
Message was edited by: Wender.

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