Hi Ray
1. Resolution: DVD can use mpeg1 or 2 but mpeg2 has a higher resolution so use it. The end product will be different whether you use PAL (higher resolution but lower frame rate) than NTSC. In general use the frame rate your camera shot the video in.
2. Quality: DVD players can generally handle up to 9Mbps (9000Kbps). In the quality settings use Variable Bit rate (CVBR) encoding up to 9000kbps and select highest quality 7. PD doesn't have a 2 pass option (analyze then encode) but if this is available use it.
for web streaming I won't comment as I do little of this.