I'd like to thank every one above who has offered suggestions. I have learned things from each one of you.
Drew, this video is a how-to about art, oil painting, and there is no fast action in the race-car sense, just me moving around a little and demonstrating things, and it's standard-def video. But I would like the paintings in the video to look as good as possible, and not get too degraded by compression artifacts, or whatever evils overcompression breeds.
As this project nears completion, it appears that I'm surely going to run past two hours, but I will be able to hold it to under 2 1/2 hours.
As you suggest, I will export the video from Final Cut as a self-contained movie before running it through Compressor. These are the kinds of tips that I really appreciate.
I have not learned DVD Studio Pro yet, so if I can take the compressed video from Compressor and dump it into iDVD, that would be the simplest way for me to produce the DVD. If iDVD can't handle it for some reason, I'll learn DVD Studio Pro and produce it that way.
And I'll try more than one encode as you suggest, and try 2-pass VBR, to aim for the best possible results. Thanks for the links to more info; I will examine them all.
Shane, thanks for pointing out that Compressor already has a 2.5 hour preset. I'll try that first.
Ian, since this is a how-to video, it will have lots of "scene" menus to let viewers navigate to the topics they want to review or concentrat on. Heck, by the time I'm done with it there could be two or three dozen "scenes' to select on this DVD. I'll drop the project into iDVD before doing anything else, and see if it can handle it, but I don't have much hope that it can. I expect it will end up having to be mashed in Compressor.
Michael, dual-layer DVDs would be a solution, as you say, but as you also noted, they are troublesome for many DVD players to play, so I'll stick to single-sided DVDs.
Bengt, since I want to distribute this video, I'm stuck with burning it to DVDs, and so the USB flash drive solution is not an option for me. If I were only doing the video for myself, I agree that would be the best way.
Again, thanks to all for the help.
Tom