Comparing shot for shot here there's no difference in the programmed first frames (after dissolves) and the export. Never a sign of A/R distortion.
Videopad seems to be rendering faithfully what was programmed.
The issue likely arises from the mixed A/Rs and effects.
To simplify, try this...
Set preview Aspect Ratio drop-down to 1:1, so what's shown is what you will get.
Remove the A/R effects (Letterbox or Crop) on every clip. Just leave the P&Z settings.
Prior to adding fades to the clip, adjust the Pan/Zoom Start/End boxes if necessary to reframe a shot.
Export at 1:1 , such as Resolution 1280x1280
Widescreen Fit: Crop and Zoom
Frame Rate: Variable (Smart Max 45fps),
Quality/Filesize: Default
You should get this. Download and view with WMP or other player. Looks just fine here.
For smoothness and enhancement, fades have been added, the "fisherman" clip has been extended slightly, and there's a dip between the two ending background shots.
Also, confirm that the PC's video driver and Direct-X are up to date...
AMD / ATI users: http://support.amd.com/us/gpudownload/Pages/index.aspx Intel users: https://downloadcenter.intel.com/default.aspx nVidia users: http://www.nvidia.com/Download/index.aspx?lang=en-us Update DirectX: http://support.microsoft.com/kb/179113