Your target aspect ratio is wrong
PAR is 1:1 square pixels.
It should be 4:3

-kwag

well the picture still looks good to me. what difference will 4:3 option make?

The A/R is just a tag inserted in the header of the mpeg file. The players can refuse a disc because of the bad A/R in the header.

And 352x576(480) MUST be 4:3 for DVD
16:9 is not valid for that resolution.

-kwag

i don't have 16:9 anywhere. here's my settings:

Your "target" aspect ratio must *Always* be 4:3 , if your resolution is 352x480(576)
Not 16:9, not 1:1, nothing else!

-kwag