Use Mercator projection. But be careful. I think you have to use WGS84 for 
tracing over aerial imagery.

  Blaž

On Tuesday 15 September 2009 20:18:57 d f wrote:
> Hi
> 
> I've downloaded some data to JOSM but the data is squashed in appearance in
>  the north-south direction. It causes inaccuracies when I map. For instance
>  i drew a rectangle at about 45 degrees, but when it showed in mapnik it
>  looked like a parallelogram.
> 
> I've downloaded the latest Java & JOSM.
> 
> Any ideas for a solution?
> 
> Cheers
> Dave F.
> 

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