Converting WMV files from BBC iPlayer: Daniusoft Media Converter Issue

I'm trying to remove the protection from some BBC iPlayer WMV files. I've tried all the various freeme2 type programs but have given up trying to get them to play nicely with WMP. I've also tried WM Capture 2 but wasn't blown away with the video quality (mostly on motion scenes).

Then I found the demo of Daniusoft Media Converter (tried Tunebite but no video conversion in trial). This appears to work great, except where my input videos look 16:9, the output always looks squashed and looks 4:3. Has anyone experienced this? Also, is video conversion faster than real-time or does it have to play the video as it converts (difficult to tell on a 1 minute trial)?