First the facts. I am capturing 8mm video using a Sony camcorder for playback, a Canopus ADVC-100 and Scenalyzer.

The problem I am having is that the captured video is not "clean" at the bottom of the frame. If I watch the video on the camcorder it is a perfect picture. But, if I watch the capture in Scenalyzer while it is playing or after is has been captured to an .avi file, the bottom of the picture looks like it is bent.

Any thoughts on what could be causing this?

Look at the images at the bottom of this page here:
http://www.digitalfaq.com/understandsource.htm

This is called OVERSCAN. Is this what you are seeing?

Here's a bigger sample:

http://www.digitalfaq.com/forum/uplo...rscan-mess.jpg

Yes.

So, should I be concerned about this? Is there anything I should/can do or will it not be visible when I watch the DVD on my TV?

This should not be visible on the tv screen. You can always burn a small sample to a DVD-RW or DVD+RW to verify.

You may want to mask with black (cover it, clip it) to keep it from sucking up bitrate.

Remind me which editing/encoding software you are using, and I can give you diagrams if needed. Will show you where to mask it.