PROBLEM: mixed formats (XD CAM and DV PAL) in sequence

I'm working mainly with material frm HD CAM, and therefore my sequence settings are

Frame size: 1920 x 1080
Aspect Ratio: HDTV 1080i (16:9)
Pixel Aspect Ratio: Square
Field Dominance: None

Compressor:XD CAM EX 1080p25 (35Mb/s VBR)

I also have some DV material. At first I did not have a problem mixing the two formats in the same sequence. At some point though, I have copied material to another sequence, and the sequence settings for that sequence are

Frame size: 720 x 576
Aspect Ratio: CCIR 601/DV PAL (5:4)
Pixel Aspect Ratio: PAL-CCIR 601 (720x576)
Field Dominance: Lower (Even)

Compressor:DV-PAL

In THIS sequence, the DV material appears to be zoomed in. If I change the setting to match the FIRST settings, the XDCAM material appears in a little box in the middle of the monitor, and the DV material appears as a normal size. Copy pasting the material to a sequence with the first settings does not help the situation either.

What can I do to see both the DV material and the XD CAM material as a normal size?

Will I havve trouble exporting this sequence (burning a DVD of it) with the two different formats?

I am in a rush with this problem, so I really appreciate any hints I can get.

Thanks for your help!!!

Annu