Most important is to convert the audio as well from aac to PCM at 48Khz sample rate. This can be done in compressor at the same time as transcoding to ProRes.ProRes HQ is not necessary.
To answer your other question – no you can’t uprez it back to the original quality if you make it DV codec, but you can make your ProRes file in an HD spec and just edit in HD. This is easy to do in FCP with ProRes providing your drives are fast enough. The pixel size you have been given is strange. Make it 1920 x 1080 which is a proper HD size.