to create a very simple BD isn´t difficult if you are using roxio toast. other option, if you need some more programming it could be done with adobe encore.
16:9 (letterboxed) is the right way to go, but I would advice to encode your assets prior authoring your DVD with DVD studio.
you can do it easiely with compressor.
but DVDs wont look as good as BD on big flat-screens.
hope this helps.
cheers
danny