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as already said, just crop and resize according to your final aspect ratio. I would go 720 x 480, select no letterbox, also use at least a 2500 - 3000 kbs bit rate for a final vid.
Another option, you can go higher bitrate like 8000 kbs sec if you want to keep same quality as the an original DVD and then use that as a (unwatermarked) master file and batch all your other member vids formats from this file.
It's good to keep this higher bit rate (unwatermarked) master for making trailers and such also.
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