You forgot one essential fact - mpeg2 DOES contain the "display extension" information that says what pixel aspect ratio will be used on the player, therefore your 360x540 mpeg2 file will "stretch" horizontally...
But avi container DOES NOT contain such an extension, so the player supposes the square pixel playback. Therefore you must tell it to the player manually, if you captured something like a 360x540 resolution, you idiot !!!!
Go to library and self-study the video standards instead of drinking in the pub...
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