yes, stick with 29.97 timecode.
Now — for your OTHER problem.
That’s almost another thread over in the DVDSP forum. You might need to trash a bunch of stuff and then reinstall Compressor… but ask over there, please. Don’t want to give you wrong info.
Here’s a work around that works:
In FCP — File – Export – Quicktime Movie.
Keep CURRENT SETTINGS and make sure the self-contained box is NOT checked.
Name it and save it.
Open DVDSP and import THAT file as an asset.
Build your dvd and DVDSP will encode the file for you. You can go into the preferences if you want and mess with the settings… but again, that’s for the DVDSP forum.
Good luck to you,
CaptM