I was thinking just now about how we should go about encoding this movie.
The problem: FFVIII switches resolutions a lot. Normal gameplay is 320x224, whereas any full-screen menu is 368x216.
I've done some tests with a real PSX hooked up to my PC via composite cable (sorry, but my S-video is broken):
Gameplay on a genuine PSX.
Menu on a genuine PSX. (Both images have overscan cropping turned off.)
Gameplay in the emulator. Sorry, I only have a ripped ISO of the French version available on my computer right now, but since they're both PAL I assume this isn't a problem.
Menu in the emulator.
I loaded all four images in Photoshop and resized the emulator images until they matched the "genuine" screenshots. What I found is, unsurprisingly, that they don't have square pixels.
The regular gameplay picture had to be resized to about 216.79% in width and 200.42% in height. The menu went to 190.34% in width and 200.42% in height. Obviously, these are only approximations. Nothing scientific here. And of course the sizes of my PSX screenshots are arbitrary. It's only the aspect ratio that matters.
Here's how the emulated screenshots stack up when resized to suit the genuine screenshot exactly:
So, it's not a simple matter of giving everything a 4:3 aspect ratio. It would be nice if the encoding gods could give their thoughts on this.