I got a copy of MovieXone 4.0, in which I zoom in/out and pan across still images, add background music, fade between images, and render to an SVCD-format mpeg2 file. I like it a lot.

What I'm trying to understand is, when I set up an SVCD format project, and put a still image into the video editor, I have to size it over a 480x480 square template, and it looks normal (not squished or widened). When I play it back on a standard 4:3 TV, what's happening to that truly square original picture? I've heard that the pixels on the TV are not really 1:1 size, but I still don't get it. Why does a 352x240 VCD come out looking the same (aspect ratio-wise) as a 480x480 SVCD?