Something screwed up resolution when you converted from dvd to .wmv-----that was helpful wasn’t it? I suspect your widescreen movie was reencoded to a much smaller resolution and may be 4:3 instead of 16x9, but that is just a guess.
Any particular reason to go to .wmv? Other than it plays in Windows Media Player? There are many good tools for converting dvd to xvid for example, and the quality will be very good. The xvid codec is free to download if you need it.
I would rip to the hard drive using DVDFab HD Decrypter using the Movie Only option to reduce the amount of compression necessary. Then use AutoGK or Xvid4PSP to encode to avi or mp4 using the xvid codec. You can then delete the ripped file and just keep your newly encoded copy.
All of the tools I’ve mentioned are free to download and use by the way. They also have advanced controls if you need to fine tune your encoding.
Welcome to the forum.