I posted the "moviemaker" version of the code simply as a convenience for those who use that approach. I myself don't use it, and prefer to write out individual uncompressed frames (tif, tga, png, bmp, whatever) and then do ALL compression as a post-processing (pun intended!
) step.
As to "HOW" you do that, it will depend on what software you have available. And as to what compression format you want to use for compressed files, again, depends on target. Just as a point of reference, I've had great success using the DivX codec when the target is computer playback or online playback transcoding (like youtube, vimeo, google, etc).
Your conversion path to get the best DVD output may vary - it is SO dependent on the authoring software you use (and I'm a Windows guy, so can't address Mac questions). Generally though, (for most software), you want to feed it the highest quality uncompressed video and have IT do the transcoding for you as part of the authoring process. Check the manuals, or other references for your authoring software, as to what's the best input material format.
Hope that helps.