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Mavimao said: Plus the benefit of having a H.264 encode would be wonderful as well.
That's true, and it's a good idea. Of course, one doesn't have to upscale to use h.264, even if the intention is to burn the result to disc.
EDIT: Ah, I've just seen your subsequent post with the screenshots. I didn't realize that the 720x480 you mentioned didn't have black bars. Upscaling a little would make sense then.
Congratulations on releasing the DVD, Puggo! I look forward to seeing it, when it eventually makes its way to newsgroups.