If you want to make a custom H.264 preset in Compressor, select the Multi-pass setting and set the bit rate to 18 Mbps or less to ensure DVD compatibility.

Note: Currently, only progressive H.264 video formats are supported, including 480p (NTSC only), 576p (PAL only), and 720p (NTSC and PAL). You can add 1080i HD video to an HD DVD project by using the HD MPEG-2 encoder (either in Compressor or in DVD Studio Pro).