I’d either split it into 3 files and burn it on 3 different disks (what I’d suggest) or I’d buy a mini firewire drive and just send that to them.
There are 2 problems with the hard drive idea:
– It costs money
– You’d have to confirm that they can accept it and find out if NTFS or HFS+ is what they need. And if NTFS, you have to figure out how to make that format.
All in all, the 3 DVD solution is far simpler.
The problem with your original question “can I compress it?” is that it then negates the purpose of giving them what they asked for. If they REALLY want a DV quicktime file I wouldn’t want to change that to something else that they don’t want.
So yes, it could be compressed, but then you’re not giving them what they want. At that point you might as well make a standard DVD since you’re not following the rules anyway.
So, my end thought is that the best plan is 3 DVDs with 1/3 of your video on each disk.