Wow, you have yourself quite a little catch .22 there...
Ok, I'm not sure what to tell you here. You're better off letting your editing software convert the footage for you to 25 fps (they always have better algorithms) than you are doing everything in 29.97 and letting your DVD authoring set it to PAL frame rates for you. What are you using?
Another option...
The best one (if time allows) is to do it in your compositing software (i.e. Aftereffects), and try some frame blending techniques, etc. Unfortunately though, in the end, you're not going to be able to use that 29.97 frame rate for PAL, and I'm not sure what the previous poster means by universal, maybe he knows something I don't. However, if you're going to PAL, you're gonna have to hit 25fps sooner or later, and better to do it at the beginning of your production than at the end with your cheapest software (the authoring software).
Good Luck!
Ty Audronis
Supervising Editor, California Academy of Sciences/Morrison Planetarium