I'm using Movie Studio 6 (I know, I'm due an upgrade) and the "stretch to fill output frame" setting does not seem to get used during the rendering process for a "save snapshot to file" image. When I have it ticked, the video that is in the preview window is stretched to fill the frame (excluding the pillarboxes) but when it is rendered (PAL DV widescreen) the video is compressed. The pillarboxes are wider and now there are letterboxes.
When I untick "stretch to fill output frame" the video in the preview window is now the same as the rendered output. However what I want in the output is the stretched video filling the frame.