Probably stupid Newbie problem :-) My first play with DVDA (1.0D)

I'm starting off a PAL Widescreen project with "Default" menu theme (if that makes a difference).

I import a PAL Widescreen aspect 16X9 file, which in this case is a 720X576 pixel Quicktime file (not using Vegas, these are external files from another source).

The file seems to come in as DVDA assuming it is 4X3 aspect file, showing black bars (pillar-box) down each side ithin a correctly shaped 16X9 window.

In both the Editing screen and Preview windows I have "Simulate Device Aspect Ratio" ticked.

I thought I could fix this by manually setting the video format for this file to "PAL Wide" under File|Optimize DVD, but it doesn't seem to make any difference! The black bars stay down the sides and the picture stays 4X3 shape with everything tall and thin.

I thought maybe it was just a Preview so I went ahead and made the DVD structure to hard disk and played it as a test... still wrong.

Can someone tell me what I am doing wrong or confirm this bug please?

It's driving me nuts that I can't figure it :-)

Regards

Stephen Harrington