From what I understand of your requirements you have an old documentary in 4:3 and you want it in 16:9. the actual format of the file does not matter you can have a 16:9 AVI it doesn't have to be m2t.
However like the others have already said you will loose quality by scaling the image.
I can also see your point about the "wings" technique being unsuitable for a whole documentary; we often get 4:3 archive footage from clients who want to display it in their new museum gallery on their new widescreen monitors, we always re-scale, they just don't like the "wings" they want the whole screen filled with the image, the loss in quality does not bother them.
Edius does as good a job as any other software of re-scaling.
However like the others have already said you will loose quality by scaling the image.
I can also see your point about the "wings" technique being unsuitable for a whole documentary; we often get 4:3 archive footage from clients who want to display it in their new museum gallery on their new widescreen monitors, we always re-scale, they just don't like the "wings" they want the whole screen filled with the image, the loss in quality does not bother them.
Edius does as good a job as any other software of re-scaling.
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