If you are planning on setting menus with links to different areas in your footage, you can:
1- Use chapter points in Encore and link throughout your footage.
2- Create several sequences in Premiere and export separately as Harm mentioned.
That will allow you to have fade in and outs, etc.
One thing to consider: If you are worried about best possible quality, you have to keep in mind that exporting to DV may recompress your footage if you have effects applied to it and it will always recompress any images, animation. Heavy DV compression doesn’t pair up with DVD compression very well.
If you have the room on your hardrive (200 Gigs+), you should export uncompressed, and then re-import in Encore and set the encoding to automatic.
You can also make use of a bit rate calculator (Google up…) and export using the Adobe Media Encoder and choose Mpeg2 DVD. Again, here you will have to calculate the space requirement for your footage, but you will skip the uncompressed render.
Vince