Problems viewing progressive on Pioneer 565A

I have just got ane of these pioneer players to watch on a panasonic PTAE200 projector and using component leads in interlaced looks ok, but when I change to progressive, the picture is stretched vertically so that the top of the picture is where it is with interlaced but the bottom is right down to the bottom of the screen.( I was watching Die hard with a vengence R2 2.35:1 )
How should I be setting it up for the picture not to do this?
Apart from that picture is a lot clearer but I can't use it .
Any help would be gratefully recieved.

 

The 565 can only output NTSC in progressive scan mode and it sounds lie you are feeding it with a PAL R2 disc!!

 

It is a R2 disc but it says it outputs a psudo Pal when you do this I think. I'm not sure

 

When 'Progressive' is selected, The 565 converts it to 60hz NTSC according to the Manual.

Looks a bit poo on mine, I found turning it back to Interlaced gives a better picture on PAL sources because theres no juddering.

Gary A