Reduced DVD image size with HD to SD footage in Encore

Question

Using CS5, when I encode an SD sequence from Premiere to Encore, all works well.  When I downconvert an HD project through AME it looks fine and shows full screen in Encore, but when I burn a DVD and play it, I get a reduced size image in the center of the screen.
I'm shooting 1080 24p with a Panasonic HPX170 camcorder.  I create Microsoft AVI files using On Location.
I use a Matrox MXO2 Mini with Max display unit, so I'm using  these Premiere project settings: 
Matrox HD
1990x1080
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I'm exporting the Premiere timeline using the recommended settings in the Jeff Bellune CS4 tutorial for converting Premiere HD footage to SD for DVD burning
FORMAT: MPEG2-DVD
PRESET NTSC 23.976p Widescreen High Quality
VBR 2 PASS
Maximum Render Quality
Min bit rate 2.8 
Target bit rate 7
Max bit rate 8
GOP SETTINGS  M frames 3  N frames12
Audio 48 kh PCM 16 bits
Multiplexer NONE
When I render files and build a project with Encore, the timeline and menu image appears full screen in the Encore monitor.
When I burn the project to DVD, it displays properly in letterbox on a standard def tv.
But, when I play the DVD on an HDTV, I get a great looking picture in proper aspect ratio, but it displays at about 3/4 size in the center of the screen with black surrounding it.  I can change the display setting on the HDTV to 'Zoom" and fill the screen with the picture without distortion.
I have the same issue creating footage at 1080i 60 fps and 1080p 30 fps and building projects with appropriate settings in Premiere and Encore.
I'm wondering if I'm missing a setting in AME or Encore. I thought I'd followed Jeff Bellune's excellent instructions on HD to SD settings in AME to the letter.
I'd like to create DVDs that will play full screen on HDTVs and in letterbox on standard def TVs without viewers having to change the settings on their HDTVs.
FYI, I'm shooting in HD, partially to get really clean keys during the edit, using the Ultra keyer in Premiere. This works great.
Thanks for any assistance.

Answer 1

Jeff,
I went back and checked all the PAR settings and looked at the monitors in 100% mode.  Didn’t solve the problem, but here’s what I found.
I’m using an avi film clip shot at 1080 24p on the Panasonic HPX170P.
In CS5 Premiere, I checked the interpret footage setting on the clip.
It read: Pixel Aspect Ratio: DVCPROHD(1.5)
I right clicked the timeline to see its properties and saw: PAR 1.5.
When I checked the monitor at 100% it zoomed in to a close-up of the middle of the image, compared to a full-screen image in “fit.”
In AME, I used the settings from your Scaling HD to SD using CS4 tutorial and the 1080 24p option.
When I changed the monitor view to 100% and switched back and forth between SOURCE and OUTPUT views, the SOURCE view was tightly zoomed into the center of the frame, and the OUTPUT view was slightly zoomed in, only losing a bit of the sides of the frame.  Unchecking "Aspect Ratio Correction" squeezed both source and output monitor images horizontally. I rechecked "Aspect Ratio Correction."
I imported the encoded clip into Encore and checked its PAR.
The PAR was set to “SQUARE 1.0”
The 100% view in the monitor was just slightly zoomed in from the “fit” view.
I tried changing the PAR on the clip in the project window to “Conform to:SD NTSC WIDESCREEN 1.2121.”
This did not change the 100% monitor view.
I saved the project and burned a DVD, but saw no change in the menu or clip size. Still small image centered.
Next I changed the PAR on the clip in the Encore project window to: “Conform to Anamorphic 1.333.”
This shrank the 100% view to show a letterbox view of the clip, showing the entire clip image.
I saved the project and burned a DVD.  On the DVD, the menu appeared unchanged, still small and centered. The clip played in full 4:3 aspect ratio, not distorted, with the edges side cropped.
Any other PAR settings I missed I should access and change?
Any additional things for me to try?