well one thing is the Pine Lakes aspect ratio is not 16X9 -- the D man crops to 2.35:1 (cinescope) which will allways have a letterbox, a smaller one in a 16X9 frame and wider bands in a 4:3 frame.
the process described in the above link will still have letterbox on a 4:3 monitor -- that's just the way it works.
The only way you can see it with no letterbox for 16X9 is to play it on a widescreen monitor with a properly encoded DVD of footage that was either uprezzed in the above manner, shot with the anamorphic adaptor, or in squeeze mode.
For the web don't bother using the above process, just live with the letterbox - or most NLE's offer a way to output the video with the letterbox cropped off, so you have a smaller frame /file for the web.
..or you can manually set your encoder to export (the native aspect ratio file) at a resolution of that aspect ratio - i always use windows media at 512x288 to export 16:9 projects. works just dandy.
as for the converion, just open up the letterboxed footage in a 16:9 timeline and use the size/scale controls to zoom in the video to chop off the bars and be left with the 16:9 footage full frame.