sorry mate didn't see this, the settings in the video are all I used to extrude the wheel arch, all I can say is make sure your circle is facing the right way (the sweep is at the end away from the plane) and that you are selecting the top edge and shift selecting the curve. also make sure you have use selected curve for extrusion clicked.

As far as the image planes go thats a graphics card issue I have that problem on my laptop, you could either do its kurts way that he shows in his tutorials or create new cameras for top front and side and view everything through those and that should stop the squash and stretch on them