8MM Tape into iMovie

Been transferring 8mm tapes into iMovie via my Sony TRV350 camcorder and firewire cable. Goal is to convert all of these to DVD via iDVD. 2 questions-
1) Should the "Automatic DV Pillarboxing & Letterboxing" box be checked?
2) On my camera settings, it has a A/V--->DV OUT option, which can be turned ON or OFF in the menu VCR settings. According to the manual, when it is OFF, it is "to output digital images and sound in analog format using your camcorder." When it is ON, it is "to output analog images and sound in digital format using your camcorder." I have tried importing with both settings (ON and OFF), and it imports fine both ways, and I haven't really noticed any difference. Do you think this actually matters? The 8mm tapes are analog and I want to convert them to digital format (DV), but it appears it's doing that with either setting.
Any help would be greatly, greatly appreciated. Thanks for your time.

My iMovie version 4 doesn't have those options, but I am guessing they are for 16:9 and other widescreen formats. Your old 8mm video is likely standard 4:3 ration, so you probably don't need those checkboxes.
I think the DV Out only matters if you need the video to be present on the analog output jack on the camcorder (looks like a headphone jack like on an iPod). My thinks that that you always get video output present at the Firewire port but the analog port is probably off when you have DV Out set to ON. So as you found, if you are not using the analog port, it doesn't really matter.
Enjoy,
Patrick
p.s. after several years, I am finally up to analog tape #12 with two more after than to finally finish my analog to digital conversion using my old Sony TRV330 Digital8 camcorder.

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