Why does 16:9 footage going in become 4:3 squished out?

I am working with HVX200 720P footage. Now, I'm really new to final cut but I have been working in the film and NLE world for a while. This is my first mac and FCS2 is my first run with FC.
Anyway, I've been editing and have compressesd my edited footage from FinalCut. When I play it, QT plays the footage in its 16:9 aspect ratio. (I'm still wondering about the 960x720 camera output vs the 1024x720 that 720p is supposed to be... I've lucked into a setting that seems to work.)
Now, I want to turn that footage into an h.264 file. And when I run it, the 16:9 has vanished into a squashed 4:3 file... everyone is tall and thin! Why is this happening?
Also, while I'm here, what is the best DVD training series on FCS2 out there?
Thanks- Glen

After you've chosen a setting in Compressor 3 - a QT 7 web setting, I'm guessing? - go to the Geometry pane (2nd from the right) in the Inspector. Under Dimensions (Encoded Pixels) alter the Frame Size drop-down setting to Custom (16:9), then adjust your height or width if you desire (Compressor will adjust the other value accordingly) and you should be all set.

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