capturing letterbox in Matrox project

Whe capturing letterbox footage from my DVX cameras in a Matrox RTX100 DV standard (4:3) project, the footage is intepreted as, captured as widescreen, 16:9, and not 4:3.

To corect this I have go to "Interpret footage" and select the 4:3 Pal option.

I was wondering whether or not this affects the quality of the captured image, and whether or not there is a way of avoiding this?
 
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