So what have you exactly set the TV aspect to in the Video settings? It should be 16:9 but it's behaving more like fit to screen or 4:3 pan & scan.
This is from page 44 of your user manual, sorry that the formatting didn't come over.
I would have thought this covered your problem.
The picture shown on the TV is
(The sides of the picture are cut
off, the picture is stretched
horizontally, or black bands
appear at the top and bottom of
â‰¥Go to â€œVideoâ€ in the SETUP menu, and change â€œTV Aspectâ€ to suit your TV.
â‰¥Change the aspect of TV to the correct one.
If your TV cannot change the aspect when input is progressive,
go to â€œVideoâ€ in the SETUP menu, and change â€œTV Aspectâ€ to suit your TV. If the problem
still persists, select â€œProgressive Out (Component)â€ to cancel the progressive output
from the menu.
â‰¥Turn off the zooming feature of your TV if you are using Variable Zoom.
â‰¥Ensure that the unit is connected directly to the TV, and is not connected through an A/V
selector or other equipment.
â‰¥Connect to the component video input terminals on a 480P compatible TV (Video will not
be displayed correctly if connected to an incompatible TV).