I have an 1:57 min project in FCP7 DVCPRO HD 720p60. 23.98. Sending it through compressor I get about 40 GB. Is this reasonable?
Compressing logic seems beyond my understanding. What settings for HD should I choose?
You really need a basic primer on compression and I don't think a forum is the place for it. You don't seem to have a basic understanding of codecs and delivery. You need to get a good tutorial on Compressor and there are many.
DVD is standard def.
You need to know about making H.264 for Blu-ray which is Chapter 14 in Compressor manual. You can use the H.264 for Blu-ray template (Job Action). Alternately you can use the Share feature in Final Cut Pro which makes a Blu-ray disc with primitive menu. Toast will also make Blu-ray discs.