I can see a few things. Firstly if you are going to convert the files to standard def, then just capture them as HDV to start with. Otherwise you are transcoding twice.
Second is SD is 720 x 576 anamorphic so use compressor to convert the HDV to that format. FCP expects 720 x 576 anamorphic in its timeline and your final DVD will be that aspect ratio, so it makes sense to stay that pixel aspect. Compressor is a better tool for batch converting files. QT Conversion isn’t as good or as fast by all reports.
ProRes is your best bet for SD if space is an issue. Otherwise uncompressed is my preference. Some here swear by DVCPro50.