From posts on Gallifrey Base by members of the DW Restoration Team, and the RT's website, here is what I know about the process of releasing the TV Movie on DVD.
The 1996 US Broadcast
This version contains a title card reading "Based on the BBC TV Series" at the beginning. It is also uncensored, and includes fade-outs to commercial and fade-ins from commercial.
The master tape for this version is a component D1 tape, 29.97 fps interlaced, 525-line NTSC.
The 1996 UK Broadcast
This version removed the "Based on..." title card and all commercial fade-outs. It's unclear to me if this means that the fades were removed, or if they were simply cut off. It is also censored in some places, though some fans prefer the censored version (mainly for the "more dignified" manner in which the Seventh Doctor regenerates).
The master tape for this version was a normal NTSC-to-PAL standards conversion done in the US. Unfortunately, this version retains artifacts of 3:2 pulldown (basically, they directly converted 29.97fps to 25fps, instead of IVTC'ing first).
The Uncensored UK Broadcast
This version is the same as the US broadcast, but without the commercial fade-outs. It retains the "Based on..." caption and is uncensored.
This time, the BBC requested the NTSC master to convert themselves, at the advice of the Restoration Team. They converted from the NTSC 525-line, 29.97 fps D1 tape by IVTC'ing to 24fps, interpolating from 525 to 625 lines, then applying the 24->25fps conversion and the 4% speedup. The initial master tape was a component Digital Betacam, which was identical to the US broadcast, commercial fade-outs and all.
The BBC decided to once again remove the commercial fade-outs before broadcast. In doing so, they went from DigiBeta to composite D3 tape. This is what was broadcast uncensored after watershed in the UK.
The DVD (unsure how much of this applies to the "Revisitations" DVD versus the initial release)
This version is a bit of a hybrid between the earlier versions. It removes the "Based on..." title card and all commercial fade-outs (this time by cutting off the dissolves), but remains uncensored.
As the uncensored broadcast's composite D3 tape is unsuitable for transfer to the component DVD format, the RT went back to the PAL D1 master made for the uncensored broadcast, which, as has been stated, was IVTC'd from 29.97 to 24, then sped up to 25fps.
The RT cut out the commercial fades to match the uncensored UK broadcast exactly. In removing the "Based on..." caption, however, they had to go back to the original, flawed master initially given to the BBC, so that shot is an awkward 29.97-to-25fps-without-IVTC deal.
So, it seems, by this information, that it should be fairly easy to slow down the PAL DVD to 23.976fps, do something to fix the one cocked-up shot, and downsize from 720x576 to 720x480. Right?
Source - the Doctor Who Restoration Team website's section on the TV movie (refers to the earlier release, not the "Revisitations" set).