"It's also not the PS3: I just watched a DVD (The Best Years of Our Lives) and it displayed in 4:3 with black bars. It seems to only be Watch Instantly that stretches the image. This is very annoying, and I'm surprised more people…"
"Thanks for your help. I'm not sure where the option for this is in the PS3 (if there is one) but I know that it's not an issue with the TV itself because it does not stretch the image when displaying a SD TV broadcast."
"I have no experience with the ps3 however I can share what I think may be the issue. My brother has an HDTV 16:9 or 16:10 and an xbox360. Both the HDTV and the xbox have a setting to stretch the video to the screen so that there are no black bars.…"