I just followed the guides to convert a PAL DivX video at 480x368 resolution into SVCD format using TMPGEnc. In the output of TMPGEnc I specified for the image to be 'centred (custom size)' which has worked for me in the past with VCDs. The custom size I chose was 480x368 resolution since TMPGEnc told me that the PAL SVCD video size is 480x576.

Can anyone please explain then why I got an MPEG file output with a resolution of 720x540 with an actual stretched picture size within that being 720x368?

I don't know what I did wrong to get this, and I don't understand how I managed to get something which is supposed to be impossible in the PAL SVCD format.