Scott
Try this:
In FCP, change your sequence setting to Field Dominance: None. Keep frame rate at 29.97, and everything else the same as in the easy setup for the DV NTSC.
Render the sequence. How does it look?
..It should look better than Lower(Even)
Next, export directly from FCP to Compressor. Try the canned preset for DVD Best Quality 90 minutes. Use as is. Do not make progressive.
I know you’ve probably been through a hundred iterations, but test this on at least a portion of your video.
Also, Instead of exporting directly from FCP to Compressor, you could make an QT w/ the Animation codec, highest quality, 29.97, millions of colors, auto keyframe,720×480, and do not check the “de interlace source material.” Then encode in compressor w/ the canned preset. See which one looks best, but I think the one from FCP may win out.
Also, what is the source format of your still images?
Good luck..
Vicky