Final Cut 7 to DVD

I am trying to make a dvd from an HD timeline. Everything looks clear in my timeline, then when I convert it in iDVD, everything looks blurry. I made the mistake of saying yes when someone asked me if I could put pictures to DVD, the reason for iDVD is so I can put things into chapters. What is the best way to make this work?

Create chapter markers in the FCP timeline.
Export to Compressor to create your MPEG-2 video and AC3 audio files.
Author the DVD in DVD Studio Pro.
Here's an old 3-part training video I still have posted for the full workflow, start to finish.

You must also realize that DVD format is SD resolution, which is about 1/5 of the HD resolution.