I wonder if anyone can help me, before I explode!!!

I have a "Pinnacle Video Transfer" which is a tiny device which records a MP4 file from a composite source. Make quite a nice job, but there are NO absolutely options. What you get is what you get.

Unfortunately, when you record from a PAL widescreen source, what you get is a video file which only plays in 4:3 format on your PC.#

i.e. the video is played, but is too tall.

One solution is to resize the size of the screen on your video player software, but that is not really a great solution.
What I'd like is a video file which will just play in widescreen format on my PC.

Ideally, I'd like a quick fix to flag the MP4 file as a 16:9 format, without recoding. But from what I read I dont think this is possible.

So... please could someone help me set up a project, load in the MP4 file and output a Xvid that plays correctly.

Honestly, I must have tried 100 different settings in Vegas 8.0b, and I simply CANNOT get it to work.

Please... Save my hair!! What do i do??

Thank you for ANY help you can offer.