If you want to be able to play your disc in a set top player of any kind, set your DVDSP preferences to be 'SD' (Standard Definition) and not 'HD' (High Definition).
Whilst you can create HD discs in DVDSP, they will only play in a few players - as David said. DVDSP cannot create Blu-Ray discs, and making HD products won't help you there either. The structures on a HD disc are different to a SD disc... use SD.
As for your footage, however you shot it, you need to get it into SD dimensions (720x480 if running NTSC) and convert it to MPEG2. Your audio needs to be AC3, and Compressor is the tool to do this for you, not DVDSP. If you use DVDSP it will get encoded, but you will have such little control compared to how Compressor does it.