How to Save an iMovie Project in 720HD?

After creating a new project in iMovie 11, I attempted to export it in HD 720p. Whether I chose Share/iTunes or Share/Export, the HD options (720p and 1080p) were greyed out. Large (960x40) is the highest resolution format available. The new project was created as Widescreen/24fps-Cinema. The source material was shot on my iPhone 4 at 1280x720/24fps. Why isn't 720p available as an export option? DId I miss a step that would enable the HD options?
I know that I can select Eport using QuickTime to export into 720p format. It uses my QuickTime Pro v7.3 to do the work. Unfortunately, if I upgrade to Mountain Lion, that version of QuickTime Pro will no longer work, so I want to be able to learn the correct process for iMovie.
Also, I have learned that when I use 30 fps source material, the 720p option is available. This is nice to know, but my iPhone chooses 24fps or 30 fps without giving me a choice, so I can't always guarantee the frame rate when I shoot movies with it. I don't understand why the iPhone isn't consistent. I'd love to get an explanation for that, too, if possible.

If it's just under 2 hours long ..it'll fit. (If it's just under 1 hour long it'll fit, and possibly appear to have slightly higher quality.)
iDVD compresses video for duration, rather than anything to do with file size.

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