I got some files from a Panasonic SR150 that makes MPG-files 576x704 that is "supposed" to record PAL DV Widescreen

I set my Vegas project to (custom) 720x576 with
pixel aspect PAL DV WS (1,4568)
-- Correct? i.e. one sets the project to the TARGET format, not the INPUT format?

If 720x576/1,4568 I get black margins to left and right.
If I change to PAL DV (1,0926) I don't get black margins
-- What to choose? The camera says it records widescreen...

When rendering I set to M.C. MPEG-2 / DVDA PAL W.S.
720x576 with 16:9 display
-- Correct?

I can't seem to match all these variables to get the correct results - circles are compressed etc.

Any hints on the correct settings?