The problem is actually not only w/vv4, but with vv3 after having installed vv4 and/or DVDA.
When I try to render an AVI to DVD MPEG2, or even to another AVI, I'm getting horrible artifacts when I use a letterbox (so the image doesn't get clipped on the TV). It looks like a really bad rippling effect when there is fast movement. You can see it in the preview window when the file is being rendered, and you can see it on the final DVD when played on a set-top box (though it looks okay when I play it on my PC). Please see my screen capture of the preview window so you can see what I'm talking about.
http://www.tiferet.com/v4screencap.jpg
I never had this problem with VV3. What happened???
TIA
-Jeremy