Okay a little bit of mis-information here but very close.
first off the canon xl2 does not shoot in frame mode it has true progressive scan ccds.
Second off “yes” you do want to interpret all your footage to 23.976 and work at a comp that is 23.976. This is the best option since you want to work and see your full 24 frames per second without the pull-down.
Now once you are satisfied with your work, render out your movie and in the “render settings” change the time sampling to use lower fields first (for NTSC anyway) and I generally use the wwssw cadence to render out.
also if you are using procoder don’t render to dv-avi use a quicktime “photo-jpg” at high quality because it will look a lot better when you encode for dvd.
have fun,