New to iMovie5 - Format question

Hi,
I borrowed my co-worker's Sony camcorder to convert my old Hi8 tapes to digital. I already ripped about 4 tapes in "DV" format. I also notice that MPEG-4 format is available at the time of import. What are the fundamental difference between these two formats? Which format is superior in terms of quality & compatibility? Can someone help me with this?
My intention is to convert to digital, do basic editing and make a plain simple DVDs via iDVD5. Period. I am not into all special effects etc at this point. So I am guessing that I need to do the following::
(1) Import from the camera to Mac via iMovie5 - assuming DV format.
(2) Edit the clips
(3) Add chapter markers
(4) Create iDVD project from iMovie
(5) Burn the project from iDVD5.
Can someone tell me if I got this straight? Also when iDVD5 burns the playable DVD, it "appears" that it is using ".mov" format, which is Quicktime. We all need ISO format to play in normal DVD player, right?
Please let me know
Thanks
Mahesh

Hi flatfeet - DV is more or less uncompressed, full resolution video, whereas MPEG is a much compressed format. DV is far superior.
You have the sequence spot-on. The finished iMovie (.mov) is then compressed by iDVD when creating the DVD.
Hope this helps.

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