So far for me, I am capturing at 720x480, cropping out the top and bottom 104 lines (leaving me with 272) resizing that to 360, then adding 60 line black bars at the top and bottom. avisynth script:
LoadPlugin("Decomb.dll") # used to inverse telecine
AVISource("swotep4s1.avi") # first side of disc 1 for testing
Trim(898,50171) # trim the intros and side change
Telecide(guide=1,blend=false,post=false) # deinterlace
Decimate() # inverse 3:2 pulldown
LanczosResize(720,360,0,104,720,272) # crop the black bars then resize to anamorphic
AddBorders(0,60,0,60) # pad black bars to make it 720x480
This gets me decent results. My two things left are to possibly recapture (not entirely happy with the current one) and then find the best method to encode. So far it likes like VBR 4500Kbps avg is my only option...