Hi Puggo, I don't know about your latest version, but here is a post from earlier that shows some settings: http://originaltrilogy.com/forum/topic.cfm/Puggo-Strikes-Back/post/487463/#TopicPost487463
There is a screenshot with my xvid4psp settings based on the sample clip you provided. Each scene needed to be cropped slightly differently to get it right.
For the edges, I would leave everything exposed and crop all the way to the edge of the useful picture so you will see the curves. Maybe you could post some screenshots showing what it would look like.
Also, I think I used VirtualDub to split each scene into separate AVI files at the beginning, then resized/cropped and encoded each scene individually with xvid4psp to 1280x720 lossless avi, then I used xvid4psp to open the first scene, join all the rest, and encode to 1280x720 mp4.
Here is the video again: http://www.sendspace.com/file/lf8yq9 There is still some blue glow on the top and bottom sometimes, so I didn't crop enough in all of the scenes.