green border from Compressor

I'm having a really tough time with this -- I have a ton of old DV video that was shot on a Canon XL1 about 10 years ago and ingested in DV format. Going from Final Cut to Compressor and transcoding to m4v for iBooks is creating a file that has a transparent green border that's not in the original video.

Quicktime shows the original DV file properties as such:

DV, 720 × 480 (640 × 480), Millions

DV, Stereo, 48.000 kHz

Normal Size: 640x480

Display Size: 640x480 (Actual)

So what I have is a single clip in a Final Cut sequence with the following settings:

720x480 NTSC DV (3:2)

Pixel Aspect Ration: NTSC - CCIR 601 / DV (720x480)

Compressor: DV / DVCPRO - NTSC

I've modified the clips as such:

1) applied 3-Way Color Corrector

2) used the Motion tab to scale the video up slightly in order to trim out some dirty edges - approx 102%

I'm trying to send the sequence to Compressor and have no trouble getting it in there. The problem is with the file that's being output from Compressor - it has a transparent green border around the entire clip - approx 2px in width. I'm sending the file to Compressor and then exporting a m4v with the following settings:

File Extension: m4v

Device: iPod/iPhone QVGA

Video Encoder

Format: QT

Width: 320

Height: 240

Pixel aspect ratio: Square

Crop: None

Padding: None

Frame rate: 15

Field Output: Progressive

Codec Type: H.264

Multi-pass: On, frame reorder: Off

Pixel depth: 24

Spatial quality: 50

Min. Spatial quality: 50

Key frame interval: 80

Temporal quality: 50

Min. temporal quality: 50

Average data rate: 300 (Kbps)

Maximum data rate: 0.768 (Mbps)

Audio Encoder

Format: MPEG4

Sample Rate: 44.100kHz

Channels: 2

Bits Per Sample: 16

AAC encoder quality: high

Data rate: 128 Kbps

I'm having to really crunch these videos down extrememly small so that we can fit them all into a single iBook. We're currently pushing 2.5GB total - even with this much compression. The vidoes are of a presenter at a whiteboard and will be displayed on a white background. The white doesn't match exactly with the background but I'm not concerned about a solid pure white background -- but the transparent green border that's being put on the video is a bit distracting. I don't have this same problem if I Export a Quicktime movie from Final Cut using File > Export > Quicktime Export with the current settings, opening that file and Exporting from Quicktime 10 using the iPhone preset. Note - In order to get the number of videos we need into the iBook I have to be able to adjust the overall size and data rate well below what the preset from QT 10 will create (can't modify the preset's settings).

I'm sure it has something to do with the DV format and perhaps a mismatch with the output settings I'm using in Compressor. Any ideas? I know this was long so please ask if you need additional clarificaiton of the problem I'm having and what I'm trying to achieve. And that you for any input you can offer. Peace!

m