"How do I make a fan edit?"
I'd start by using MPEG Streamclip to rip all the footage from the DVDs in PhotoJPEG format, 80% quality, 720x480 (size if NTSC). Change your AV settings in Final Cut Pro to match -- 24 fps, PhotoJPEG format, 16x9, 720x480. If you've got PAL material at 25fps, import it using the "interpret 25 fps as 24 fps" setting.
Then start editing.