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3 hours of SD video won't even fit on a DVD, at least not with a data rate that won't make for horrible viewing
Also, as a DVD to put in a regular player at a TV, you can't do HD anyway
I think you can get 20 minutes of HDV onto a standard DVD, that's all.
To play HD format on a standard DVD disc you must have a HD player. If you want people with standard DVD players to be able to view your video, you have to make a standard DVD. If your aim is to only make standard DVDs, you are well advised to convert your HD source to SD before editing, to put least stress on your computer and yourself.
"Horrible" may be overstating the poorness of the quality of a 3 hour video on a standard single layer DVD. Try a test sample recorded at that compression and judge for yourself. At any rate, 3 hours on a double layer DVD should be acceptable.
You can fit in 3 hours but it will be at a very low bitrate which means low quality. With 1 hour,1.5 hour you will get good quality DVD.