You want to get multiple 2TB hard drives and get these videos in their native high quality scan format as AVI files.
When you edit, however you edit, you always start with the highest quality original, then create the edit you want, and then you get the final video file. This edited video should ALSO be uncompressed AVI format.
The very, absolute last thing you do is you create the DVD (or other) file you want for distribution.
The key is starting with good material, editing it as high quality material, and creating a master cut which is top shelf.
Then work down in quality. Disc space is relatively cheap and for the type of work you are talking about you really need to value the quality of the work you are paying for. Put it on a hard drive, back up that hard drive, and then work at thei highest quality level, then go to compression. H.264 compression (MPEG4) is the gold standard right now, but is most certainly isn't lossless, even though at high enough bit rates it could appear to be.