1080 is not divisible by 16. You can, if you so desire, set the height modulation to 8, then it should allow exact 100% in both cases. I wouldn't recommend this if you're not using XviD. For future reference it's still using all the info of the file, it's just not sizing to exactly 16:9.

I fiddled with the modulus and had no luck previously. I set the height modulus to 8 as you suggested and tried again, this does not appear to work. This screenshow may offer some insight: Note the screenshot doesnt show H-mod at 8, but I did try that. Why xvid as opposed to divx? I found divx clearer at extremely high bitrates (3000kbps), is it purely a speed issue?

You're increasing your cropped source (1886 pixels wide) to 1920. Of course you're surpassing 100%. There's no need to exceed the cropped source, but it usually won't harm anything. Using DivX while resizing other than multiples of 16 will create some ugly artifacts, usually horizontal lines that would look like creased Saran wrap stretched across the display. It doesn't seem to be an issue with XviD.

Your PAR is 1:1, not 16:9 PAL or whatever... the aspect ratio of a pixel is not the same as the aspect ratio of the (displayed) frame.

In the 1080i broadcast example, 16:9 is the pixel aspect ratio (1920*1080)... but the displayed aspect ratio ("DAR") is something else, but also happens to be 16:9? If i start off with PAR and DAR at 16:9 from a hdtv source, why does processing with GK output a file with a DAR of 16:9 but a PAR that is not 16:9? This is what does not make sense to me.

Try the PAL non-anamorphic button, or manually enter an aspect ratio under Input Ratio/other to correct it. Gordian Knot counts on a tag to tell it what the intended output would normally be, and your capture may just be missing that tag.

stephanV's right (as usual). It's 1:1. Tick that in the GKnot Resolution Tab, under Input Pixal Aspect Ratio. In this case, 16:9 isn't PAR or DAR. It's plain old 1.78:1. If you plan on resizing for 16:9 DVD, then that's something else, but for AVI, people usually encode 1:1. I don't capture, so I don't know what the frames look like, but if it's a movie, you'll probably want to IVTC, or at least decimate, in order to get rid of the duplicate frames.

You may want to hang onto the source file, or do several encodes in varying bitrate - some players have a limit on what they can play. You'd be kicking yourself if you convert to 1920 x 1088 and can't play it on a standalone.

stephanV, that's a good point - I was presuming that since he was capturing a 16:9 image that the cropped areas were just black areas that I get with my own captures. If it's not, you're right.

Using DivX while resizing other than multiples of 16 will create some ugly artifacts, usually horizontal lines that would look like creased Saran wrap stretched across the display. It doesn't seem to be an issue with XviD I have been reencoding this movie continually to try and work out what is the best way of doing it. The biggest issue I am having is a similar effect to this.. except it is vertical banding and happens with divx/xvid and regardless of the h-mod. I had suspected it is the resolution change or the bitrate that is causing the problems... However the foreground and objects/faces in it are particularly clear, whilst black areas and backgrounds suffer banding and blocking. Can you offer any insight into this phenomenon? I keep reencoding and trying different resolutions, bitrates, etc, but it is taking me at least 1 day per attempt to encode ;)