High quality DVD using PP CS5, Encore

I have a project where I'm using full hi-def (1920 x 1080) AVHCD video,  24fps, and I'd like to distill it down to a high quality DVD.

First of all, I know that a DVD's 720x480 quality won't match that of a Blu-Ray or my original. No need to point that out.

My original files look fine. But, when imaged onto a DVD, I get a lot of macroblocking artifacts; areas of the scene seem to hover and move, because the data compression's simply moving huge bitmaps around to simulate full-resolution motion. I'd like to avoid that.

So what's recommended?

1. Take my PP sequence, link it to Encore, and fiddle with Encore's settings (and what settings are these?);

2. Export my PP sequence to a video file  in DVD resolution, and then use that  in Encore (and what settings should I use?).