Malcom
I would suggest that you read some basics about HD video in general and Canon 5D/7D workflows.
The resolution is 1920×1080, so whether original camera or HDV its same.
As for the transition being ragged, it’s because of you are editing the original camera files which are H.264 encoded, You need to edit them in ProRes.
You will have to change the sequence settings, select Apple ProRes codec in compressor dropdown list.Then render the whole sequence and export a self contained mov file.
Take that file to compressor and select a dvd preset. You might have to modify the dvd preset to change frame rate settings.
Once compressor is done, take the output files to DVD Studio Pro and burn a dvd.
Pradip Patil
Mumbai,India