NTSC to PAL with TERANEX

Hi- new here, just bought the Teranex 2D and have been using it all month to digitize many many hours of analogue footage from VHS, U-Matic, Hi-8 etc....Working great. Question: I have some NTSC tapes that I need to cross-convert to PAL, the aspect ratio is the question. It only looks correct when I use "Anamorphic" for output (button)- is this correct? basically I am concerned that it is taking the 720x486 pixels and slightly stretching to the PAL 720x576, is this true? and if so- can't I keep it in the proper original aspect of the more rectangular shape from NTSC and simply add black bars to top and bottom of the more square shape of PAL? Not sure if I should be concerned, but want to do it correctly. Eventually this PAL mov file will be given to someone who will then up-convert it to some HD PAL flavor. Anyone know the answer? Appreciate the time-
Thanks
Eric

If it only looks correct in Anamorphic mode then your original material is 16x9 aspect?
4:3 NTSC or PAL is 4:3