Hmmm. I forget which is the "correct" mode to match with your squeezing TV. It's one of the 4:3 modes, though. I think 4:3 LB is correct, even though you've seen some issues with that.

PAL DVDs will throw you off no matter what, I'd just get used to issues for 'other' region discs. Almost every time I change regions in my Malata I have to fiddle with one or more settings, esp for PAL discs.

Also, DVDs are not always flagged properly to get the anamorphic to work properly. (or the deinterlacing, 6.1 soundtracks, angles, etc.) This is probably why you see varying results. You may just want to get in the habit of turning the TV to 'On' for the squeeze.