Just to detail derekmok's suggestions.
There are three ways to do the reframing.
1 (simple): make pillarboxed HD, so your original 4:3 video is intact between black pillars.
2 (simple): chop 1/8 the frame height off each the top and the bottom of your original.
3 (some work): chop a total of 1/4 the frame height off the original, choosing different top and bottom amounts shot by shot.
Compressor upconverts DV poorly because DV is interlaced. The "hardware solutions" probably convert the 60i to 60p, then upconvert, then take 60i from the 60p. You can, with much work, accomplish this yourself using Compressor + FCP. The first step is explained
here. The next two are simple.
Dennis Couzin
Berlin, Germany