yeah, use the 720x576 settings for your DVD recorder.
Then you can insert the DVDROM into your computer and use programs like Staxrip to encode it to AVC or MPEG-4 settings (h264 or XVID). If the original source was widescreen use resolutions that are 16:9 ratio (e.g. 720x400, 1024x576, etc.)
if the original was standard then use 4:3 (640x480 most common)
obviously if the resizing is unsuccessful you can always keep 720x576, most of us can easily resize in VLC if we need to
could you provide a screenshot of the original 720x576 source from DVD??