Convert 1920x1080 to PAL - DVD
I have not tried Any Video Converter, but I did try HandBrake, and it works reasonably well. DVD-Video allows up to 9.5 Mbit/s bitrate, so do not be stingy, allow at least 5 Mbit/s or so, considering that free encoders are not very efficient. Make sure frame rates match, or convert without judder or ghosting. Make sure you convert between progressive and interlaced correctly. Make sure your luma is encoded within DVD legal range, otherwise your image will have too much contrast and will lose near-black and near-white detail. 

704x576 can be 4:3 or 16:9, plus 8 pixels on each side for digital blanking. The best looking DVDs I authored were 24p ones because they have full vertical resolution. I am not sure whether 25p DVDs can be authored as true progressive DVDs though. Interlaced DVDs look rather sad on a big screen.