^ yea read that thread^

(First check if your DVD player has a zoom out feature, if it does then just use that and forget about this whole thing) But I'll post my solution for you since I spent a week playing around. Go to google and search VirtualDubMod. Download and extract. You are also going to need Xvid codec (google that if you dont have it). Open Vdub and then open the video file (should be an avi). Under video make sure Full Processing mode is selected (unless you want to use AviSynth for which you can find guides on the Internet). Go to Video-->Filters-->Add-->Resize. Now each TV has a different amount of overscan so you are going to have to experiment with yours. The regular naruto episode is formatted for computer play back and it is 640 x 480. You want to keep the same proportions otherwise your video will look streched or skewed. In the resize dialog box click expand frame and letterbox image. Input Fram width at 640 and Frame height at 480 (you probably want the fill color to be black). Now the top is where you experiment. If you want 64 pixels less horizontally and 48 pixels less vertically, you would put 576 and 432, respectively. Change filter mode to Lanczos3 and click OK.

Now you have to save the video. Click File-->Save As (F7) and name your video file. Make sur video mode is full processing. Under compression find Xvid Mpeg 4 codec. Click configure. Re-encoding the file may take a while. I have a really crappy processor so it takes me near an hour to encode one episode. you have two options (based on time).

1) Single Pass (probably easier) - switch target bitrate to target quantizer and set it to about 3.75 and you will very close on quality and file size. (higher the target, larger the file, better quality). Click ok, then ok again. Then click save.

2) Two Pass (better quality) - under encoding type switch to two pass 1st pass. They way two pass works is that during the first pass it creates a file to compare against and during the 2nd pass it uses that file to figure the optimal bitrate for best quality. So click Ok, then Ok, then save. When 1st pass is done, go back to file save as and come to the Xvid configure and this time click two pass 2nd pass. Set the number of kilobytes you want for the file. A 175 Mb file would be around 179,200 kb. Click Ok, Ok, and then save.

Hope that helped