[Float Pave]

Give AppGeeker DVD Creator a go,I have beening using it for years, it is a all in one stop.

You don’t need to convert the file from 1080p to 720p, the utility can automatically convert the video and then burn onto DVD for you.

https://www.appgeeker.com/convert/burn-mts-to-dvd.html

If you try it, tell me how is the output quality of DVD video.

[Float Pave]

AppGeeker is another great tool to rip dvd files for FCP7, it seems that the tool has presets for FCP for simplify process.
Here is a guide about how to rip dvd to mov format:
https://www.appgeeker.com/convert/rip-dvd-to-mov-mac.html check it it.
Best regards.