Does your image look correct? If so this could be you losing the normal action safe which is 10% all around.
So can you give information, what settings did you use in DVDSP to m2v, 16:9? 4:3?
The question is not what timeline settings but what compressor settings give you the best.
I never like DVDSP go my encoding, I don’t like the workflow and you lose control plus you are stuck with PCM audio.
I almost always export to Compressor from my timeline, this will give you the best encodes, especially when coming from a HDV timeline.
Make a new preset w/ a CBR setting as high as you can (but never do over 7Mbps)
Set the Encoder tab Aspect to “16:9”, Field Dominance to “Top First”
Then under Quality Mode to “One Pass CBR” Average 6.5 (if that fits
Motion Estimation doesn’t matter on CBR
SAVE
Then for ac3 settings for the audio default with a couple of changes is good.
Change 1 set Dialog Normalization to -31dB, this turns it off
Change 2 Under processing tab set compress preset to “None”
This will give you hands down the best encode. But do a short test since it ties up your FCP while doing the encode. A 5 min section of your timeline would give you a good feel for the end result.
If you tell me the total length of all you material on the dvd I can give you an exact bitrate for the video or you can find bitrate calculator online.