Oddball Video Format Too Small

Question

My daughter's barn has a Lorex security DVR. It saves the video in some odd format (h.264?), but they do provide a tool for converting it to AVI. So I've done that.
The first screenshot is the G-Spot for the resulting AVI file. It looks a little odd, but I can import it into PRE7 and it works (albeit with the red line above everything).
But my problem is that the imported file only fills about half of the screen (see image below). I've tried right-clicking the clip and selecting "Scale To Frame Size", but that actually made it smaller!
I tried scaling it to about 173% and got it took up the screen, but it didn't look that great.
Is there any (easy) way to get the video to scale up to normal size and look OK? Bonus points if I can avoid having to press Enter to get the green line since I did that once and it look like it was going to take many, many hours to finish. Something with the PAR?
I had some success with running it through VLC and converting it to WMV and using MovieMaker to convert to DV-AVI. Decent quality at normal size, but VLC is very flaky when trying to do the conversion and it doesn't always work, plus it adds another 2 steps to every file which is more work than my lazy self wants to do

Answer 1

function(){return A.apply(null,[this].concat($A(arguments)))}
It's not likely MovieMaker will be able to convert it, Ed.
You are correct about that, sir. I tried it, and MM said it can't read the file (I did not try changing the suffix to MP4 and using MM... not sure if that would "trick" it).
But that's OK, because my goal here is to as few conversions as possible. Here's what I was doing:
Convert the native h.264 -> AVI (using the Lorex conversion software)
Convert the MP4 AVI -> WMV (using VLC)
Convert the WMV -> DV-AVI (using Movie Maker)
Import the DV-AVI to PRE
But besides being time-consuming, the VLC has (admitted) bugs in the WMV conversion, so the WMVs it created weren't always correct (e.g. file should be 15 minutes long but was only 3 minutes, even though file size was correct for 15 minutes). Also, I typically have to convert 4 or 5 files for each project, making the whole process even grueling.
Ideally, I'd like to just import the native h.264 file into PRE (v.7, BTW) but that doesn't seem to work. So I'm trying to make the whole conversion process as painless as possible. Here's what I had done that resulted in the files in the original post:
Convert the native h.264 -> MP4 AVI (using the Lorex conversion software)
Import the MP4 AVI to PRE
It "works", except as I said the red line above the clips and the fact that it's too small.
function(){return A.apply(null,[this].concat($A(arguments)))}
Which project settings did you use in Premiere Elements?
Hmm. The same one I always use for regular ol' Digital 8 DV-AVI projects. I forget the details.
function(){return A.apply(null,[this].concat($A(arguments)))}
Ideally, you should get Quicktime Pro from Apple ($29).
I'll check into that. If it will (easily) do the conversion I want, it would be worth it.
I wonder what do you think the odds are it would be able to read the native h.264 and output DV-AVI - that would be fantastic! Unfortunately, it doesn't seem to offer a trial version...