DV to MPEG2 Conversion

Hi all,
I have a number of home videos that I have created with iMovie in DV format. I am looking to archive these in a high-quality, but compressed, format -- preferably MPEG2. This is "DVD Quality" and I'd like to keep something at around this quality level or better.
How can I convert DV files to MPEG2 easily, and without paying an arm and a leg? (I'm thinking of a $25-$30 budget, if possible) Free is even better! Will Quicktime Pro allow me to open the DV files, then save as MPEG2? Any other suggested software? I've already purchased the Apple MPEG Playback module.
My second and related question is if any of other "standard" file formats which iMovie exports to are at the same/better quality as MPEG2 with similar compression. I'm not stuck on MPEG2, but I'm confused by the long list of iMovie export formats and options (under Format : Expert Settings).
Ultimately, I prefer MPEG2, as this is the format in which I've archived all of my other home videos (this was very easy to do on my PC, pre-switch to Mac).
Thanks very much in advance,
Tim
MacBook 2GHz   Mac OS X (10.4.8)   2GB RAM, 120GB HD

your version of iM supports the export to h264...
share/Quicktime/Expert Options
hit the button..
new dialog, looking like this (yours in English... for sure:)
in the drop down, YOU should find h264 as an option (me not, I'm still with QT6...)
h264 conversion needs a lot of computation, esp. for encoding.. your Mac has enough muscles.. , but it will not be done in "realtime".. that needs some überMacs...
DV=>mpeg2.. follow Matti's advice: use iDVD to create an .img (image, not disk) of your project; get Apple mpeg2 plugin (29$) + Streamclip (free); "convert" .vob into .mp2 .. I've done that, time consuming (see my antiqué hardware...), but working.. "poor man's Compressor" (Compressor is the ... ehm, compressor as part of the FinalCutProductionSuite, which offers a direct DV=>mp2 conversion, $$$$)
long term saving? TAPES!!! they have a proofen track-record of ~50 years.. my first homebrewn DVDs, 4y ago, are mostly "broken"... they improved the -r media meanwhile...

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