avchd to dvd with vegas --so confused--

[baross]

Hi there I have copied some mts files off my sony hdr-sr11.
when i select the files in vegas it tells me they are :
1920x1080x12 25fps interlaced

what I would like to do is edit these files and output them to standard dvd at the best quality possible.

1. what project template do i chose in vegas ?
2. what do i output to ?

i have read in the vegas help that I should choose the template that matches my output:
"Start a new Vegas project, and set your project properties to the format that most closely matches your desired output format.
For example, if you intend to burn the video to an NTSC DVD, choose NTSC DV (720x480, 29.970 fps) from the Template drop-down list "

but i have heard other places on the net the exact opposite ; that i should choose project setting to match my source files.

im pretty confused.

thanks for your time