Field Dominance, Render Seq Settings, and Export

I have just finished a Documentary Feature. I was having problems with with viewing the product on DVD and realized it was more of an interlacing problem and sequence settings. So, I went back to my timeline, duplicated it and am trying several settings.

I read a lot online and now as I wait for a really long render, I am questioning what I'm doing.

Here is the deal. The 44 minute timeline (FCP 6.06) consists of jpegs and HDV footage. I am exporting for SD DVD first. I get Out Of Memory errors when using Apple Pro Rs(HQ) so, on advice from someone else's post in the virtual world, it was suggested to copy the sequence. Then, change sequence settings to Field Dominance NONE. Then go through each cut on the timeline and change the field dominance to NONE as well. Then, render timeline using Uncompressed 8-bit. Then, export using Compressor to MPEG-2 highest quality settings.

Now, I'm trying this, but as you can imagine, I have hours to wait. My question/s is this:
is switching field dominance on all the clips in fact de-interlacing the entire project? Do I want it de-interlaced as an uncompressed master? Am I creating a worse monster by doing this because when it coverts to MPEG-2, won't it be doing FIELD DOMINANCE as lower? Will the quality in fact still be jerky? And then, if this is going to air on local cable, how would I export or convert?

HELP!

Thanks in advance for your time. I have been reading a ton, but not really understanding what I am doing!

Jen