Recital video from FCE to iDVD

This should be a simple task but I'm having so much trouble with it I barely know where to start with the questions.
I have 1 hour of recital video, recorded in SD 16:9. I brought it all in, let DV Detect set the markers, and have added audio and video transitions for effect.
My original intention was to export each performance individually, then import those into iDVD. But the problem with that is that every export option I try results in about 2 hours of waiting to export 1 4 MINUTE video clip! I wait 2 hours (or more), get a 1+ G file for 4 minutes of video. This is using the H.264 codec, exporting as NTSC 4:3 with letterbox (since iDVD doesn't seem to cooperate with the 16:9 ratio).
What am I doing wrong?
- What codec should I use (I can't seem to find this anywhere)?
- What should the output format be?
- Is this the best workflow? I read about exporting the entire movie, with markers, and letting iDVD create chapters automatically. Would that be a better technique? I'm assuming my edits and fades won't be an issue. I'm more concerned about the sheer size of this. My source file is 12.12GB (I captured the entire thing off the DV tape in one pass). And each 4-5 minute performance is ending up about 1+GB. I don't see how someone fits an entire 3 hour movie on 1 dvd with these kinds of numbers!!
Any help? Thanks.

I'm probably doing this totally wrong. In the timeline I highlighted just the section that I wanted to export - the first 4-minute performance. I included the video, audio, and 2 fade transitions in my highlight.
Then I chose File -> Export -> Using QuickTime Conversion.
I set format to "QuickTime Movie" and chose Options.
Under Movie Settings I set Video Settings to Compression Type = H.264, all the rest to their defaults (Frame Rate = Current; Key Frames = every 24; Frame Reordering is checked; Compressor Quality = High; Encoding = Best Quality; Data Rate = Automatic)
Under Size I set dimensions to NTSC 720 x 480 4:3 and checked Preserve Aspect Ratio using Letterbox. Deinterlace is unchecked.
Also on Movie Settings I unchecked Prepare for Internet Streaming.
Everything else is set to default. After 2 solid hours my little 4 minute clip was only 25% done!! Something ain't right.

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