Help needed for power director resolution avi dv when editing video

Hi all,
I am using pwer director 8 for editing my videos. I am facing a problem in production where Power director stretch the resultant video into 720 x 480, I can see any option that would change the settings, and Power director resolution avi dv has nothing to do with it, right?
Where am I going wrong? Can you guess what I am missing here?
