iDVD won't import .m2v file

[macaddict23]

I exported a .mov from Final Cut Pro X using Share > "Master file (default)" setting. It looks great, but the file size is fairly large. So I imported the .mov file into Compressor using the preset settings "MPEG-2 for DVD" and "Dolby Digital Professional."

Then, I tried importing the .m2v file into iDVD, but iDVD can't read it.

My goal is to have the highest video quality at the smallest file size possible. Is there any way for Compressor to compress a .mov and export it as a .mov?

Thanks.