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When are you compressing your video? Are you talking about the final rendering, so you can output to DVD?
If so, I’m not using CS3 yet, but I’m sure Premiere Pro 2 is similar. You go to File >> Export >> Adobe Media Encoder. This opens up a window, and up towards the top right, where it says "Format," Pick MPEG2-DVD. In the "Preset" section below that, pick a preset, such as "NTSC 4:3 High 7MB 1 Pass". Personally, at this point I click the "Multiplexer" tab below, select DVD, and I’m ready to export.
At that point, it will export a file that works perfectly for DVD creation software.
Now, If you’re not comfortable with your DVD creation software yet, theres a nifty feature (or at least there is in PP2). Go to File >> Export >> Export to DVD. It will do all the work for you. You just make the menus how you want them, and it will handle rendering and everything.