My Sony DCR-HC46 can record video in widescreen (16:9) mode; however when I transfer it to my computer it is captured and saved in 4:3 aspect ratio. Hence on the computer the movie plays back as if it is stretched vertically. I transferred video from camcorder to computer using both Windows Movie Maker software and Picture Package tool. Neither software could save the video in widescreen mode. I am not sure whether it is a problem of my camcorder, iLink cable (Belkin), or due to the softwares I use.

Which software do you use to transfer your footage to the computer?
I really appreciate any advice you give me on this issue.
Thanks in advance.
Best regards, Diego.

AVI files have no aspect ratio parameter, so you need to specify aspect ratio explicitly in a media player or in your editing program. WMM has "aspect ratio" project property.