I've just tested placing a short (30 second) video clip into one of the Drop Zones on the Main Menu in the Reflection Black Theme. This worked perfectly.
I think your best course of action is to create a new Project in iMovie. Drag the 10 second segment from the Event clip to the Project. Now export the Project using Share > Media Browser, preferably choosing the Large size from the Apple presets. Given that DVDs are Standard Definition, there is little point in choosing the HD sizes (if available).
In iDVD, with your iDVD project open, drag the 10 second movie from the Media - Movies tab into the Drop Zone. The movie should now play inside that Drop Zone when you click on the "Start or stop motion" button just below the viewer.
John
Message was edited by: John Cogdell