Export your timeline to Compressor directly from Final Cut. Compressor gives you the most flexibility with bit-rates. Go for the highest bitrate that you can fit on a disc.
I like Compressor because of its flexibility. ie: if your movie is 2 hours and 5 minutes, many MPEG2 converters will say it's too big for a DVD. With compressor you can override and say "no, 98% quality will be ok for this project."
Or, conversely, you can encode your 10 minute film at an extra-high bitrate.
Add chapter markers in Final Cut first. Compressor and DVDSP are smart enough to integrate it all.
Finally, BE SURE TO USE APAC to encode your audio. This is the BEST way to shrink down your file size. You can cut your audio bitrate a ton and still maintain excellent quality sound. This is very good for long movies pushing up against that 2 hour mark.