Preserving Aspect Ratio using CCE 2.29 SP

[Fiddler]

I ripped a DVD with 16:9 aspect ratio. I've tried a few times to encode it to MPEG2 using CCE 2.29 SP, but the result was a stretched out full screen (aspect distorted - no letterbox). I tried changing the settings in CCE from DAR4:3, DAR16:9, and SAR1:1 but nothing seemed to help. Does anyone have any suggestions to help me get the proper aspect ratio using CCE?

[Truman]

I assume you want to play it on a 4:3 TV. Then DAR4:3 is the proper aspect ratio setting. CCE can not resize, so you have to use a different tool to do that, for example VirtualDub, Avisynth or TMPGEnc.
Resize height from 576 to 432 resp. 480 to 360 and add 2x72 resp.2x60 pixel borders. Resize weigth to 480(SVCD), 352 or leave it 720.

Here is a simple examples how to do it with Avisynth:
PAL 16:9

LoadPlugin("c:\..\mpeg2dec.dll")
mpeg2source(d:\..\movie.d2v")
BicubicResize(480,432,0,0.5)
AddBorders(0,72,0,72)

In VirtualDub it is quite similar. Resize to 480x432 (bicubic b=0 c=0.5) and expand frame to 480x576.

In TMPG load the .d2v file, source aspect ratio 16:9, output aspect ratio 4:3 and save the project (.tpr).
Convert the .tpr with VFAPI.
Load the *vfapi.avi into CCE.