[Tony Sarafoski] “do I set my timeline sequence settings to:
FRAME RATE: CSSIR 601 PAL Sq. (4:3)
PIXCEL ASPECT RATIO: Square”
No you need to leave the sequence anamorphic to match the footage. Otherwise everything will be stretched.
To make the final file, you can use either quicktime conversion or Compressor. Most people here recommend Compressor. Either way, both offer the capability of making your final file in a square pixel 16:9 ratio (ie 1024 x 576 or multiples thereof).