I'm trying to make a highlight video and put it on a DVD. That means there will be alot of clips with fades and stuff between them. I'm using Studio 9 and it works fine for what I'm doing.

To put the video on DVD, it must be in mpeg2, correct? I've done this before and didnt have a DV camera so I just used my Pinnacle USB Moviebox to capture from a Hi8 camera straight to mpeg2. My question is do I capture from the DV camera straight to mpeg2 and from my old camera to mpeg2 (I'll be using both most likely.) and then edit and add effects then render it to mpeg2 to put it on the video? Or do I capture in DV and mpeg2 format and then have both in the video, edit and add effects and then have Pinnacle render it and convert it to mpeg2?

What would give me the best quality and final result? Thanks!!