If you use Mac and Final Cut, edit in HD(V), copy the timeline and paste it into a new SD timeline (of your choice), render and burn a DVD.

On a PC I only done it using premiere, I can´t remember our settings, but it was very easy.
We did have to try a few different settings before we were happy with the results.

The footage was from different sources, Sony EX-1, Canon H1 and Panasonic HVX200 (shot in DV) and it turned out very well.
So start off in HD if you can afford to

4:2:0 color space doesn't provide any more color information that 4:1:1 (but it does match the color space of DVD video). HD simply provides more samples of both luminance and color.