help:copy to dvd

having converted vhs i have 2 problems
prob1:when tape is under 1hr long it copys letter box effect not just top and bottom but left and right how do i copy to fill whole screen.
prob2:when tape is over 1hr long it says 5.73(6.15)gb 1hr 255 mins/4.38(4.70gb)this project exceeds the max project size yes/no to continue.when i click yes it says the working folder(:user|user[documents\ulead video studio SE10:01.]may not have enough space.we will help clean the converted cache file.you can also change the working folder path in preferences.what di i do to copy a tape over 1hr long i am using 2hr 4.70gb disk please help in plain english thanks