Mpeg-2 is better suited for interlaced content. You can do Blu-ray compliant mpeg-2 main profile @ main level up to 15mbps bitrate.
is popular here for doing those mpeg-2 encodes. It's a straightforward gui and the guide here will help
, you can just set it to CBR and 15 mbps. That with the other settings outlined in the guide should be blu-ray player compliant. I recall version 2.5 is best for mpeg-2.
You can also go the CLI route with FFMPEG if you want. Something like the commands below will get you a similar result: mpeg-2 with ac3 audio. FFMPEG's rate control isn't ideal at times, so this is set to average 14.5mbps to keep under 15mpbs. Replace FILENAME with the path to your dv footage and OUTPUT to the destination file path and name):
ffmpeg -i "FILENAME" -c:v mpeg2video -b:v 14500k -minrate 14000k -maxrate 15000k -bufsize 1835k -bf 2 -g 18 -flags +ildct+ilme -alternate_scan 1 -profile:v 4 -c:a ac3 -b:a 256k -f vob "OUTPUT.mpg"