Will importing iMovie 08 project into iMovie HD 6 degrade quality?

Hello,
Didn't find this in previous posts, so here goes...
I worked on a few projects in iMovie 08 before learning that iMovie HD 6 had better picture quality, features, etc for my needs.
I want to combine footage from iMovie 08 and iMovie HD 6 to send to iDVD to make 1 dvd movie.
Can iDVD handle footage from multiple projects in different iMovie versions, or do I need to have everything in one version of iMovie first? If I import the 08 clips into HD 6, will it degrade the picture further? I no longer have some of the miniDV tapes the footage was recorded on.
AND, if I do import 08 footage into HD 6, how do I do this to preserve the best quality I can?

Thanks.
What is the best video compression type to use for this purpose? I have it set to MPEG-4 right now, with same frame rate as original. I don't know a lot about compression types, but would DV/DVCPRO-NTSC work or be any better?
What about audio settings? It is currently set to 16 bit, 48 KHz, Linear PCM... the audio wasn't great from the source (internal camera mic), but I'd like to preserve what is there!

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