Thanks Michael but I’m missing something. Yes, I am in a 720p project. I switched the format to Standard and unchecked 16:9 on the monitors but no letterbox. The footage is squashed horizontally. I added pan and scan, changed source and target but no letterbox. Btw, only have 4:3 available for target, not 4:3 letterbox.
I did just figure out that exporting footage using DV Stream w/ DVCPro 4:3 Letterbox works. I then imported into a 4:3 project.
Would really like to get your method to work though.