My DVD Player is set to 16:9 (Wide television conversion):

Select this when the aspect ratio of your TV is fixed to 16:9 (wide TV). The unit automatically adjusts the screen width of the output signal correctly when playing back a picture whose aspect ratio is 4:3.

That way no matter if I’m playing a DVD formatted to 4:3 or 16:9; the picture will always appear full-screen.

The DVD player connected to the Canopus ADVC 100 via S-video cable and high dollar 1/8 inch to RCA splitter.

Nero is set to capture as DV Type II.

Once I’ve captured, I import into Adobe Premiere Pro. The session is set to DV – NTSC, Standard 48kHz.

I load the video, properties read as follows:

Image Size: 720 x 480
Frame Rate: 29.97
Average Data Rate: 3.4 MB / Second
Pixel Aspect Ratio: 0.9
Depth: 24 bits

And you’re saying that once all of my edits are done to export to DV NTSC/16:9 Widescreen?

I’d like to send you the video footage of what happens when I do that. The resulting AVI appears squished from side to side as opposed to from top to bottom. However, if I export as 4:3 (regular) the image appears correct until I encode to PSP. On PSP, the image appears squished from top to bottom. You can especially tell on the watermark.

Got any suggestions?