The reason why this problem came up was that my client digitized the material at offline RT. Which is Jpeg but at 320 x240 35% quality. It was 9 features so it was 18 hours of source material. For my work around I used my old sony converter box (which I used back on FCP 1.2.5 way back when) which has firewire to analog outputs to my Beta SP and then to the monitor.
When I dig. for offline cuts I usually use DV res. for low res. I don’t think that offline RT is that usefull now, but the Kona 3 plays out the offline RT just fine. The Decklink Extreme is playing it stretched vertically. It doesn’t seem like it would be a big deal to fix this problem???