If you capture to MPEG-2, you will be able to go from 4:3 to 16:9 using SVRT. I have a mini-dv camcorder that can record in 16:9. If I capture using the VCR composite cables hooked to a Diamond or KWorld USB adapter instead of firewire, the 16:9 will be recorded as 4:3 squished. When I put the clip on the timeline and then tell PD that the aspect ratio is 16:9, the preview then shows the correct video aspect ratio, as long as the project settings are already 16:9. If you can get to that point, then so far so good. After that I can go right to the Produce tab and select MPEG-2 for the video format, and select the 720x480 HQ setting. If the SVRT button doesn't come on, then I have to edit the preset (click the plus sign) and change the bitrate so it is the same or higher than the clip's bitrate. Sometimes I'll have progressive clips, and then I'll have to change the setting from "Top field first" to "Progressive."
Here is five minutes of youtube video that shows what I did to a MPEG-2 clip in 4:3 ratio to make it permanently 16:9 ratio using SVRT. There's no sound. With a 63 minute video, you can tell that SVRT is being used because it shows SVRT 3 in the preview window and because it takes less than 3 minutes to process the 63 minute video.
http://youtu.be/wiYDRRar0ho
The video was recorded full screen 1920x1080 HD.
Gateway DX4380, AMD A8-5500 Quad Core 3.2GHz with ATI Radeon HD 7560D; 16GB RAM; 1 TB SATA 7200 RPM; Windows 8 Pro 64-bit; PDR11, PDVD12.