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I was not happy with the results of exporting a quicktime file and then importing into compressor. So I did a little research on this on the web and came up with this work flow that (sort of) works for me: (I say sort of because it can take up alot of space and is time consuming)
1. export a quicktime file of the sequence (not sure if it makes a difference if it's self contained or not)
2. Drag the HD file to a DV50 sequence. The sequence should be set up to as close to the original settings as possible other than it's in dv50 instead of HD.
3. Export a self contained of the SD sequence
4. take the self contained into compressor and be sure in the inspector that the settings asre correct