Neither. Both will cost you quality.
Allways use optical zoom and dont scale up in Premiere or AE.
You can use scale if you drop HD footage in a SD project.
But best is to film HD, edit HD and export to SD.
Just set the size to 4.7 gb that is what a single layer dvd is.
If you outputted from Premiere lower your target bitrate of the mpeg2-dvd file a bit to get it to fit. Or use a bitrate calculator.
Did you use Dynamic Link?