Hi Andy
Obviously your clips and images should be the highest resolution possible. Full HD1920 x 1080
I was (and still am) using VP2.41. Version 3.02 has some speed problems although I like some of the features.
The formats and things I mention here are what my VP version 2.41 offers. (Its the free professional version at any rate with some formats inactive but these below work. )
Once you have your edited clips finished on the sequence line, these are the settings I use. The DVD video looks OK on my TV (32")
My usual original footage is 1280 x 720 MPEG4 H264 (Sometimes I use1920 x 1080 MPEG4 H264) The clips are converted to MPEG2 though, as MPEG4 on my system shows marked lagging of the video against the sound and this causes editing difficulties. The MPEG2 conversions are fine though. For slideshows or inserted still images I use 12 megapixel images cropped to a 19:6 aspect to fit with the video (and the screen area of VP)
Click "Save Movie" on the taskbar
Select "Computer/Data"
Enter destination for the resulting rendered video.
"Preset"......Click down arrow and choose HD 720 If you have used the larger format select HD 1080(The default is Custom)
"File format" .avi This is a common container and will play in most programs. But if you are creating a DVD the program you
use for this will convert it into another format anyway. (VIDEO VOB, BUP etc.) So I use .avi for mine.
"Resolution" Use 1280 x 720 HD 720p.......(I meant film format in my original post not file format. 
"Framerate" set this to 25 (TV PAL) or 29.97 (TV NTSC) depending on your TV system
The top box will have reverted back to "Custom" but you can ignore it.
Now click the button below the boxes marked "Encoder Options"
Select the "Video compressor MPEG4 (Native)" option from the down arrow drop down menu.
Ignore the Video compressor setting button. (Should be 4096 for the bitrate and 8192 for the maximum bitrate as defaults)
Select "Sound compressor" option MP3 (Native)
Sound format 44100 Hz at 128 Kbs Stereo
Click OK
Click OK
Depending on the length of your film, rendering may take a while.
Although you can save your work straight to a DVD with VP it doesn't creat a menu and you can only save one project per DVD.
I prefer to use a third party program such as DVD Styler..another reason why I save to my PC first.
Hope this helps
Nat