I thought the video was being distorted during processing with PowerDirector, so I did a test by comparing snapshots at different times during the process.
1. During the 'filming' the snapshot is 1920 X 1080 (all picture)
2. The captured video snapshot is 1440 X 1080 with black bands above and below the 1440 X 800 picture (lost 280 lines of definition)
3. The rendered video (HD mpeg2) is 1920 X 1080 with black bands above and below the 1920 X 800 picture (distorted)
Any suggestions?