(1) Widescreen filter (Video Filters > Matte)
- Very simple to apply and use. However, I believe though that this limits how much Pan-n-Scan abilities you have once applied (I haven't used it in quite a long time).
(2) Put a slug on the top video track. Apply a Mask filter to the slug, and adjust the settings to create your letter box. Because the 4:3 footage is not actively being modified at all, you have complete control over an Pan-n-Scan adjustments you may wish to make.