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Proper way to crop out black bars in Adobe Premiere?


Hello all. I’m currently working on an edit of the original Star Wars in Adobe Premiere. What I’d like to do is crop out the black bars before rendering out a lossless AVI and then add back black bars when finally encoding to a Blu-Ray compliant file. I’m thinking this may help me avoid any artifacts in the black bar area from any of the multiple sources I’m using.

So I’m wondering what is the best way to do this without losing any image area. I’ve read I should change the sequence settings to 1980x800 but I think I’ve seen others do 1980x810 in the past. Anyone have any expertise in this area?