Does anyone know if the modern LCD TV’s have square or rectangular pixels and should I therefore compensate for aspect ratio?
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well, that’s a tricky question, cause we have HD tv’s that will stretch a 640x480 to 740x480 so the videos and display looks fat, but it has a setting to respect 4:3, which when turned on looks ok. Having said that, if you burn a dvd for tv and dont use the right setting, like HD or PAL or NTSC, the video burning software will distort (stretch) you image usually to fit on the whole screen. You have to render two separate movies for letterbox or regular, and allow the user to choose which they see from the dvd menu.
When I mix animation into anamorphic widescreen footage, which has non-square pixels, I render at 1024x576. The footage itself is shot as 720x576. I don’t know if the AspX and AspY are appropriate here as I think they are meant for the frame aspect ratio. To deal with non-square pixels, you need to set the pixel aspect ratio, which isn’t the same thing. Blender doesn’t seem to have a setting for that (Renderman does) but adjusting the resolution should work.