Sorry about that dean. FAVC is a simple front end for converting avi to dvd. Trying to use it for NTSC to PAL dvd conversions is pushing past its original intent. Sometimes it works, sometimes you get squished.
There are some guides over at videohelp for this format conversion, but most involve a commercial encoder. Easiest path is just to use ProCoder, but you can buy a lot of dvd players that can handle both formats for the cost of that encoder.