Getting rid of letterbox

[McGonigle]

I'm trying to convert a VOB file to iphone. I started by setting the resolution to 480X360 (dvd is non anamorphic). Then I cropped the top and bottom to get rid of the black bars. Now it is 480X360 with the image stretched vertically (bars are gone). So I thought changing the resolution to 480X204 (2.35:1) and keeping the crop would unstretch it. But this made the resolution go to 272X204. How do I keep the 480 width without it stretching vertically?

Thanks,
Brian

[Midiman]

You don't.