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Scaling in Nero Video degrades quality of video (5:4/4:3 >16:9)

Nero Video 2017

I have a clip with 5:4 resolution but with black bars on top and bottom, which I want to delete - desired video without bars is actually in 16:9.

I used methods of scaling available in Nero Video.
I set project to 720p, and just zoomed with mouse the video in left top corner (the same as scale option). It fitted perfectly (so video without bars is clearly 720p).

Unfortunately, result video after rendering is terible. Very, very low quality. No matter what encoding method and bitrate was chosen. Other clips without need of scaling render fine.

For me, it looks like the program behave as it just zoom the video, but not having in mind just to crop the bar - it zooms from my input resolution, but not simply crops the bars during rendering.

This method is useful only with pictures, which have usually bigger resolution than project's resolution. There is no significant quality loss while zooming then, but in my case it's absolutely bad solution.
I tried to figure out if "remove black bars" option in properties of video on timeline is available like here:
But it looks like it not works for movies (I don't have this option).

To exemplify my problem, I used free software - Xvid4PSP, just to crop my video, and it's result file looks the same as input file on 4:3 monitor (the same AR like in movie), but shows no bars on 16:9 - so success. It detected bars automatically, and result file is in x264, mp4, as I wanted.

And pity that exporting file in 4:3 mode with proper aspect ratio for custom resolutions (above 720x576) in Nero Video is posible only with MPEG2... The same for AVI lossless option, no 60 fps, no bigger resolutions.
I needed to render my video in MPEG2, and remove bars in other software (i restored bars in Nero Video project before rendering, and preserve original resolution of input files). So I needed to recompress whole video, because lossless codecs in Nero Video

I believe that one day, new scalling option for cropping videos will be implemented...
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