I am having this same problem with WinXP. There are no references to it in any of the prefs, nor can I find any hint of this problem on Adobe's website support pages. I haven't finished scouring the user forums yet though on the Adobe site, but I'm not optimistic.
Method 1: create a Letterbox alpha matte in the 16x9 aspect ratio superimposed over your 4x3 content, assuming the content has no major subject matter in the upper and lower portions of the screen that can't afford to be lost.
Method 2: See last months issue of DV magazine for more methods.
djyod,
First, WizyWyg's reply is incorrect. Premiere Pro is the next version of Premiere. It is NOT the same as 6.5. It is essentially "7.0" and should be released shortly.
Second, my guess is your Pinnacle DV500 will work with Premiere Pro, making sure you install Premiere first...
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