HD to SD conversion Best Method

I have just upgraded to HD and need help with the best conversion process to a SD DVD disc. My set up is Final cut 6.05, compressor 4 and DVDSP 4. My biggest concern is preserving image quality. In a few months I have a few dance recitals with stage dancing and changing lights they are usually about 3 hrs long. As it stands now I’ve done a few test runs with about 5 mins of HD video @ 7.5mbps and it turned out OK but that was with 5 minutes, what would be the best method to maximize video quality of 2hrs of HD video using any kind of encoder software?
Thanks

1. User AC3 audio, so that you can use a higher video bitrate
2. 4.5mbps is about what you need for 2 hours
3. use 2-pass VBR encoding
4. use best motion estimation
That should look great. If you still don't like it (bearing in mind that SD WILL look worse than HD) then you could use a dual layer disc.
Jeremy

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