Work Flow through FCP

Hi

I guess I am looking for some yes or no answer here. Scenario: I make surf movies, I have just started a new movie. I have a Sony HVR-Z5 (just released camera) that can shoot PAL/NTSC 25p (it says native progressive, no idea if this means true progressive, but it looks better than interlaced) 50i, 24p, 30p, 60i. I am in a waiting period (waiting for swell) now which looks like I will be filming tomorrow or in the next few days, I obviously can only shoot when there are waves and they have to be good waves or there is no point. So I am trying to research (not my strong point) if the work flow I think is going to work will work. I am trying to avoid filming in a setting and then finding out after shooting for 4 months that the footage won't work, or won't look as good as it could have doing it another way, I can not simply reshoot, I can not get the surfers back, one chance only. I will not be editing this footage until May, June, so hopefully on FCP7 (everybody seem to think it will be release at the NAB thing it April, here is to hopping).

So I was going to shoot in 25p, the reason for PAL is that I am in Australia and I have a water camera HVR-A1 but this only shots interlaced PAL. All though the final copy of this movie will be pressed as a NTSC DVD Because they will work on PAL DVD player but not the other way round. The reason for progressive is that it looks better then interlaced (nobody would buy an interlaced surf DVD as it looks cheap, all previous movies I have had to De interlace but this has lost a lot of quality in the picture)

Settings in FCP has an Easy Setup HDV - 1080p25 (I am still on FCP5 saving for FCP7). Will this setting allow me to capture my footage at it's best quality? Will I be able to bring in my interlaced footage from the water camera (I have read something about changing the field preference of interlaced footage to none will enable this-?)

Then when I have done effects, anything in motion, color etc... then by taking it to compressor to make a SD and a HD version of the movie. to finally go to DVD Studio Pro to create the SD DVD. DVD's are interlaced? because TV is? Will I have to convert my footage in compressor so that it will be fine for the DVD?

will the above work flow work? will I run into any trouble?
If anyone thinks there is a better work flow through FCP (hopefully 7) with the camera setting available please let me know. It would take me week to try and find out if this would be the best way but I have at most days before I have to film. I have just got the camera so no chance to test all settings.

Any help, suggestions would be greatly appreciated. I just want to product the best job I can and would hate it if a technical setup issue caused me to fall short of that goal.

If you have read this far one more question won't hurt. I have read that shooting progressive panning shot don't look great as they are jumpy, I have only had a quick test with some surf footage today and in FCP it does not seem to be. Would this change once it is outputted to DVD?

Thanks
Joseph