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I have a mix of older video clips at 640 by 480 and some at 1080 by 720 (Going in the same project). When I put the project together the smaller size videos are obviously pixalated. Would it make sense to create the project at a smaller aspect ratio to prevent having to stretch the smaller video bigger and making them pixalated? Should I go smaller than 640 by 480 to further enhance the quality of the smaller videos?
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Often times displays do a better job of upscale work than NLEs, so the typical answer is "probably".
But Topaz has a video upscaling app capability that many video editors have found very useful for a "one size up" upscale project. You might test that out.
Neil