Interlacing Issues

So I've read about a million questions and answers on this topic and still cannot figure it out so I figured I'd reach out to the community for some help. It seems once I get a lead, the answer was just never given or maybe it's just way over my head at this time?!

I just got started in the wedding videography and editing process and am having issues with creating a satisfactory DVD.

I have HD footage and need to get it onto a SD DVD with the best quality!! But after trying several times, all I'm getting are jagged edges and when there is fast motion, lots of interlaced lines showing up...

Here's my process:

I normally import from a two camera shoot (so I don't know if using two different cameras might screw up some settings) into Final Cut Pro 7.0.3. In this particular case, the sequence settings are:

Field Dominance is Upper (Odd), Editing Timebase is 29.97, Apple ProRes 422, Aspect Ratio is HDTV 1080i (16:9)

Then I "Send To" Compressor 3.5.3. I want to ultimately get it to DVD Studio Pro 4, so I am using "DVD Settings (depending on length) Encode 90 minutes, 120 minutes, and 150 minutes.

This is where the issues seem to happen. In the timeline of FCP the images look wonderful with no issues. If I export directly from FCP using Quicktime Conversion, I can get a nice looking video.

My issues seem to be happening in Compressor and I cannot seem to figure this out... Any help, advice, solutions are much much appreciated, guys!