Having difficulty with aspect ratio settings on captured avi file

I used virtualdub with huffy to capture a VHS home video. I think by default huffy sets to 720x480. When I played back the avi file it appears that the video is 4:3 and not filling a 16:9 screen. Mediainfo indicates 3:2 aspect ratio. The video is centered in the screen with black bars on both sides. Since this will be a dvd I ran avstodvd and noticed the same thing after encoding. I have been playing with this for a while and not getting anywhere so appreciate any help/advice.

mediainfo:

Format : AVI
Format/Info : Audio Video Interleave
Format profile : OpenDML
File size : 42.7 GiB
Duration : 1h 31mn
Overall bit rate : 66.8 Mbps

Video
ID : 0
Format : HYMT
Codec ID : HYMT
Duration : 1h 31mn
Bit rate : 65.3 Mbps
Width : 720 pixels
Height : 480 pixels
Display aspect ratio : 3:2
Frame rate : 29.970 fps
Standard : NTSC
Bits/(Pixel*Frame) : 6.303
Stream size : 41.7 GiB (98%)

Audio
ID : 1
Format : PCM
Format settings, Endianness : Little
Format settings, Sign : Signed
Codec ID : 1
Duration : 1h 31mn
Bit rate mode : Constant
Bit rate : 1 536 Kbps
Channel(s) : 2 channels
Sampling rate : 48.0 KHz
Bit depth : 16 bits
Stream size : 1 005 MiB (2%)
Alignment : Aligned on interleaves
Interleave, duration : 32 ms (0.96 video frame)
Interleave, preload duration : 31 ms