Spaced Ranger:
The image resolution is 704x384, and has an intended pixel AR of 40:33 (anamorphic widescreen NTSC). So the playback image size should be 704x317. That's what I set as display width/height in the MKV file.
Also, I believe most players expect content to be encoded with 16-235 luma range by default, because that's broadcast standard. With both MPC-HT (Win7) and VLC (OS X) the colors looked fine to me. Also both player resized the video correctly.
May I ask what player do you use?