Yes.... 704x346 gives an square pixelled aspect ratio of 2.034:1. That said, 346 vertical pixels is very unusual because is does not conform to mod16, mod8 or mod4.
If the resolution (pixel frame size) of your encode really is 704x346, I'm very surprised your Amstrad can play it at all.
Plus, are you 100% sure your Amstrad can detect PAR/DAR signalling?
Cheers
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