[Natalie Go] “Do I set the capture settings to anamorphic as well as the project setting?
Yes.
[Natalie Go] “OR do i edit it in regular 4:3. “
No. But your broadcast video monitor must support 16:9, if not your image will appear stretched (but normal in FCP)
[Natalie Go] “What about the black bars?”
There should be no black bars if you shot anamorphic and are editing with everything set anamorphic.
[Natalie Go] “When I watch the DVD on my widescreen television will i see them? “
No. Not if you have the correct settings all the way through (that means your DVD Player, your widescreen monitor, and your compression settings in Compressor).