Start with the standard MPEG2 and Dolby DIgital presets from the Disc Burning folder. Depending on what kind of video you use as a source file, Compressor will make the appropriate adjustments to display it properly.
All DVD is SD.. If you give Compressor a 16:9 HD file, it will output 720X480 anamorphic so it displays correctly on a wide screen TV. Frame Controls are on automatically for HD material because the video needs to be resized. So it takes a bit longer to process than SD. If you run into any difficulties in playback, adjust the bitrates downward by about 10%-15% in the Inspector (Quality section of the Encoder).
If you want Compressor to burn the disk, you can enable these stock settings by using the Batch Template.
If you intend to use a DVD authoring program like Toast, DVD Studio, or Encore,then either use the two output files to author – or for Roxio Toast, you could also use a disk image. (And BTW, if you have iDVD, skip Compressor altogether and bring in a Quick Time file.)
Hope that's clear. Good luck.
Russ