I'm looking for "best practices" advice for a project setup (Premiere CS5.5, Windows 7 Pro)

I have been tasked with updating an old Corporate video with new music, sounds, graphics and narration.
The ONLY video-camera material I have is from a corporate DVD (NTSC) - the original source material is simply not available. . 
I can rip the DVD to MPEG 2  and  import it into Premiere without issue, but would like to be able to use higher-resolutions for the updated graphics.
I plan to export to Youtube (HD) but may well export to DVD or BluRay as well.
My question really narrows down to how to manage Sequences.   I figure that my Sequence settings should be the highest resolution I expect to work with (Youtube HD or Bluray) allowing me to easily export to lower quality, but I don't really know if it's as  simple as that.  Is there an industry standard methodology?  Am I close?

Premiere can actually use .vob files from DVDs, just copy them from DVD to hard drive, then Import into Premiere.
Is the existing DVD video in a 4:3 or 16:9 format? If 4:3, consider how you will work that into a 16:9 program. Rather than having black pillar bars at the sides, many editors will put in some sort of background to fill that space. A popular solution is to duplicate the 4:3 video on a lower track, stretch to fill the screen and add Gaussian Blur effect. Since the colors/content of the side bars will match the main video, it is somewhat disguises the fact that the video is 4:3.
If you put SD footage into an HD program, it is going to look "soft" compared to HD footage. As a compromise, you might consider editing the new program as 720p rather than 1080p, so that the SD resolution is not being stretched as far. All computer video/YouTube video is non-interlaced, meaning editing sequences and exports should be done as Progressive.
Potential workflow issue - if you take the existing SD footage from the DVD, and upscale it into an HD sequence, then export back to DVD (SD resolution), the video is turned to mush. It has been upscaled, then dowscaled again, really kills the quality. Might need to copy the finished HD sequence to an SD sequence, fix any size/scaling issues for graphics and titles, and export DVD from the SD sequence to avoid the upscale/downscale of SD footage. Note that DVD video is highly compressed, so you are already working with a weak source material, recompressing again is going to be a quality hit in any case, but definitely avoid upscale/downscale again.
I don't have Adobe apps in front of me at the moment, but I believe the 720p Blu-ray export options are limited, perhaps 720p at 59.94 only, not certain. That may effect your decision of 1080p versus 720p.
Hope these tips help
Thanks
Jeff Pulera
Safe Harbor Computers

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