Poor result using Compressor

I need help. I use a Sony camera (HDR CX560) bought in US with NTSC as standard. I live in Europe and would like to burn a DVD for my Blue-Ray player showing it on my PAL TV.
The footage is 1080i, 1920x1080, 29,97 fps.
I have tried several different ways of achieving good results, but with no luck:
1. Editing in Final Cut Pro with original specs (1080i, 29,97). The result showing in FCP viewer is not perfect, but quite good. A little bit of stuttering and a bit blury pictures. I have tried "Send to Compressor...", selected MPEG-2 for DVD in Compressor (customized to 16:9 TV format). The process stops after a minute - a file is being created, but only the first 30 seconds of the movie is visible. I also tried Share>Export file using Compressor settings. The file created does not have acceptable quality, mostly bescause of very disturbing stripes. I also tried Share>Master file but the output is not good enough (using codec Apple ProRes422 (HQ) - same stripes.
2. Editing in Final Cut Pro with european standard (1080i, 25i). The result in FCP viewer is good with one exception - a lot of stuttering images while panning. I tried all the output/share alternatives mentioned above, with poor result.
I use OS X 10.8.3, Final Cut Pro X 10.0.8 and Compressor 4.0.7
Can anyone help?

pnils wrote:
. Created a project with the original settings (1080i, 1920x1080, 29,97 fps).
FCP is usually pretty bullet proof in handling formats – and most of the time letting it set the project properties is the best way.
From what you've said about the camera and the footage, you shouldn't encounter any potential problems until after you export and start the standards conversion.
Create another project. When the new project dialogue window appears, make sure the settings are set to automatic (video properties set by first clip). Take one of the 1080i 60 clips and edit it to the timeline to set those properties. Export that clip as a test. If it plays smoothly, and it should, proceed to delete the clip from the project and paste the problem sequence to the new project. Delete all project render files and event render files. Now export (don't bother to re-render).
Post back with results.
Russ

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Steve,
FYI - I think that MK had already tried sending directly from PSE 7 to PRE 7 see his mention of
I then wanted to put everything together using PRE7 - slideshows, video
clips and titles. From PSE7 I clicked the "send slideshow to Premiere
Elements" at which point the slideshow was dutifully dropped into my
currently opened PRE7 project. As the project already contained the
aforementioned scanned Standard 8 clip, the project setting was PAL DV
48kHz.
One of my concerns about the specifc scenario is that the PE project setting was PAL SD video and the expected projector resolution was thought to be 1024x768 (and therefore higher resolution). even with Scale to Framesize off, I was not sure if that resolution difference would be a problem.
Your suggestion is making the PAL SD DVD and then using a software DVD player to play that DVD to the 1024x768 projector. That is a different approach that I had not considered -- but it would probably avoid some of the awkwardness of dealing with 2 distinct types and resolutions of output.
MK,
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ADDITIONAL comments
played the result in the PRE7 full screen preview window...
I missed this earlier. Because your computer monitor is probably much higher resolution, I question whether this full screen preview is an effective evaluation of the final quality. Steve and Hunt, what are your comments on this?
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can I re-size the images while they are actually *in* the slideshow?)!
Besides, PSE7 itself and Windows Movie Maker handle images larger than
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Converted some files across to my hard drive using Elgato Video Capture.
I asked for the file in H.264 not MP4 (although end file is .mp4?).
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Message was edited by: Marc Griffin

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Thanks Everyone For Your Help!
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