Forget about any free encoder as the output quality would be very poor. Bear in mind that PAL has 25 frames per second, while NTSC 29.97. Encoder has to make interpolation tricks to get additional and not existing pictures. In most cases, after many hours, you will end up with ghosts flying all around, frozen frames and so.
Good quality encoder costs between $100 (TMPGEnc) to $500 (Canopus), much more than not so bad standalone player capable to play both formats.
And... PAL is superior to NTSC
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