Saving an edited from FCE 4 with chapters

Hello all
I have finished a wedding video edited in Final Cut Express 4. It is 1h and 30mins long. The groom wants it as some kind of file that he can store on his computer. I have added 19 chapter markers also because he wants to make a DVD with it at a later date. I have iMovie but I assume he has a better version of this which is more versatile. Will any apple DVD software recognize the chapter markers?
Its vital that video quality is excellent. What steps do I need to take to do this? He will watch it on his plasma TV and his computer. At the moment my timeline and properties are (two top pics):
http://www.flickr.com/photos/48380644@N06/
Is there anything I should change here before the export? And reasons why so I know for next time?
Thanks in advance
Kevin

Most if not all plasma, LCD and LED TVs are both interlaced and progressive. The panel itself is progressive, but that's not the end of the story because it is the video circuitry and embedded programming in the TV that manages interlaced vs. progressive video (as well as a lot of other complex electronic/video processing). Some TVs are better than others.
Your source video (DV-PAL) is interlaced. DVDs are also interlaced except in the (rare) exception. If you are going to show this on a TV - even a plasma TV - fooling around with deinterlacing and/or field dominance will be a quick way to turn smooth interlaced video into jerky progressive video.
The bigger issue with showing this standard def DV-PAL video on a large screen TV is that no matter what you do, the process of the TV itself scaling up your standard-def video to fill the screen will soften the image and perhaps even show some artifacts. This is due to the scaling up (enlargement) of the video, not the interlacing. Again, sorry to beat a dead horse, but the elargement of your standard def image to show on a large screen TV is a bigger challenge than anything else. Neither deinterlacing nor changing the field dominance will correct that problem; in fact it will only make it worse.
That said, if you plan to view the video on a computer (per se, not by playing a DVD in your computer) then you might benefit from creating a separate version that is deinterlaced before exporting to a QuickTime Movie that you would play on your computer. But don't use that same deinterlaced QuickTime Movie as the input to iDVD for burning DVDs.

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