Hey lizardo and Bandalier,
In order to avoid distortions like squishing (or stretching), as I understand it, you shouldnâ€™t change the aspect ratio at all.
Donâ€™t confuse the â€œwide-screenâ€ aspect ratio of the original film with the screen resolution that you need to select for your mobile device.
Select the screen resolution for your mobile device from the list (or add a â€œCustom Sizeâ€ in the â€œResizeâ€ tab). DVDFab will then resize the original â€œwide screenâ€ video to fit your playerâ€™s screen dimensions based on your selection. The aspect ratio displayed on the screen will not change, meaning there shouldnâ€™t be any stretching distortions. However because the image is being shrunk, you will see black bars (letterboxing) on the top and bottom.
To get rid of the black bars, you still keep the same resolution that your player uses, but you need to crop the wide-screen video. (Cropping is different than resizing.)
After you've selected the device screen size (resolution), go to the â€œCropâ€ tab where youâ€™ll see a â€œLetterboxâ€ / â€œPan&Scanâ€ slider. Use the slider to select how much of the video will be cropped in order to fill the screen of your mobile device. You can select some black bars, not so much, or no black bars at all (Pan&Scan).
Hope this helps a little!