Hi Klink,
I would suggest you try first the LBR. This way, you can see if your DVD player supports variable bit rate on MPEG-1. If that plays correctly, and the 352x576 is off screen like you mention, maybe your DVD player doesn't like that resolution ( Half DVD or Half D-1 resolution ).
You might want to encode with the KVCD-CQ-352x576-_PAL_-PLUS template, but change it to MPEG-2 instead of MPEG-1, and see if it will play centered on the screen. Some Pioneer models behave like that. Also, try using FitCD and encoding with the script it makes, and installing AviSynth. You can download AviSynth here
http://www.sf.net/projects/avisynth2 and FitCD here:
http://www.kvcd.net/forum/viewtopic.php?t=2142
-kwag