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Most widescreen sets have the option to stretch a 4:3 image out so that the image in the centre of the screen isn't distorted as badly...most of the stretching occurs near the sides of the screen. It still looks funky if someone's face happens to be near the side of the screen, but it works better than a normal stretch. They sometimes call it "panorama" mode.
That's what I leave mine set at. I don't like the black bars on the sides of the screen if you try watching it in 4:3 mode.
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