Welcome to the forums.
A - Yes.
B - See these tutorials for lots of ideas.
C - DV AVI
D - Yes
E - I'm not a lawyer.
which will run on a VCR/DVD player, right?
Encore will produce a DVD that will be playable in a DVD player, not in a VCR.
As a wedding videographer, I rely upon people such as yourself for my income. So my tendency would be to suggest you hire someone like myself to do the job.
I'll agree with Eddie, with these addenda:
I'd not use MP3 as the file format for the Audio. If you are ripping from CD, then go with PCM/WAV. This will be at 44.1 KHz, and PrPro will easily handle the upconversion to 48KHz for DVD. If the Audio comes from iTunes, etc., and is already in MP3, watch out for any embedded "album art," as this has caused many problems for others in the past. As for E, I plead the same - as this depends and I'm not a lawyer either.
For the images, I'd resize (in Photoshop in my case) to the exact size required. If you're going to DVD, then that would be my first choice (720x480 PAR-0.9 for NTSC). If I need to pan/zoom, then I would resize those particular images to the exact dimensions that I needed. In Photoshop, one can create an Action to resize an entire folder. If I have some different sizes (due to pan/zoom), I'd put them into different folders to do the appropriate resizing. I am less a fan of PrPro's resizing algorithms, and opt for Photoshop's instead. I find the quality to be a bit better and the processing load on PrPro to be lessened a bit. Also, as I do my pans/zooms by hand, and specifically for the individual image, I know beforehand exactly how large/small the image will be. All of this is done, before I Import the image(s) into PrPro.
Just wrapping up a "slideshow" with what has become 1900+ still images (up from the original 1400), and PrPro (plus Photoshop) does a great job.
PS remember to set the Duration of the stills, before you Import into PrPro. You can alter the Duration (by hand), for any that need more, or less, but decide on the main Duration BEFORE Import. Then, remember to reset the Preferences, should you alter it from what you might normally want.
PPS depending on how you wish to display the DVD footage, you can create a "looping" video in Encore by doing a Playlist and setting the End Action to the video's Timeline. Otherwise, you can do a traditional DVD with the scene selection Menus, etc..
It can be done with PP but i recommend a photomontage programm like ProShowGold.
This will save you a lot of work.
If you are going to size the images anyway, why not size them to match the sequence properties?
(1) import/open the image
(2) set pixel aspect ratio to 0.9 (or whatever you are using)
(3) set the crop tool to 720 x 486 pixels (for a DVD)
(4) position the crop tool appropriately; Crop
(5) save the image -- i'd use an uncompressed file type TGA, PNG, TIF
Setting the size correctly in Photoshop and using uncompressed eliminates the need for PPro to have to resize and decompress the image. Note that the image resolution is irrelevant since the video image size is measured in pixels.
The final image size will be about 1 meg ( 720 x 486 x 3 bytes = 1049).
I just realized my last post was redundant. Oh well. When I got CS4, I viewed some Lynda.com courses, and if my memory serves me correct, either PPro or Encore has a "utility" to facilitate building slide shows. May have been in CS3 as well.
Encore has had a SlideShow function since at least CS2. However, I find it more of a quick & dirty solution. PrPro (or a SlideShow program, like ProShow Producer) is much more powerful and less prone to problems.