I think the main point to be made is that, during composing, the picture is for
reference only. You don't need high resolution. That said, Its seems a bit out of the normal for a producer to send you a Dvd video for material. I would think that most would send a dvd data disk with an .mpg file. People differ though.
I you watch the video link, you'll see that the author takes the given video and produces a low-res copy for use in sonar. When he's finished, he then takes the rendered audio and mates it back up to the video and renders a reference copy for the producer, and provides the music track as well. It's important to note that this assumes that the final video rendering is done by someone else - the main work product here is the music track.