For your interest.

Have done old DV PAL file conversions to MP4 files for saving harddisk space.

First you need to figure out if the format is the 4:3 or 16:9 by looking at it - your source is 720x480 which technical is 16:9 despite the stated 4:3 format.

Then I use AVS Video Converter to convert to the proper MP4 format for Pinnacle Studio editing - if the visual format is 4:3 then 960x720 and if 16:9 then 1080:720, Codec to H.264/AVC and bitrate to 4000.

In the AVS Video Converter you also can select a 16:9 format for a 4:3 format where you get black side areas.