640x480 is the size of a square pixel image that will look normal on a computer screen. That would be the QuickTime version. Circles will be round.
720x480 is the non-square pixel version. Television systems "know" what that is and intentionally distort the picture so circles again come out round. Television display programs (Final Cut, DVD Player, etc.) "know" what that is, too.
The problem comes when you try to cross the two. Export a still from a television frame and Photoshop will think everyone gained 20 pounds.
I'm on less firm ground here, but I believe the two numbers are QuickTime "knowing" how to distort the picture to make it look "right."
Koz