You have now discovered the "aperature ratio."
The human eye has a rectangular field of vision. It's aspect ration is about 1:2 which means that for every inch tall, it's about two wide. 1/2=0.50.
But, the extreme left and right are not in focus very well. The area of good vision is the center and has an aspect ratio of about 5:7 for every seven inches wide, five inches tall. This is why conventional photographs are 5:7 ratios, the 5x7 is a classic size. 5/7=0.71.
The problem with 5:7 is that it's fairly rectangular. CRT picture tubes are difficult to make rectangular. For best results, they should, in fact, be round. The closer you get to round, the better off. But, we don't want round pictures. The best you can do for a picture tube then becomes square which is an aspect ratio of 1:1. 1/1=1.
Ordinary TV is 4:3. This means that for every four inches wide the screen is, it's three high. This makes Most computer monitors (until recently) have been 4:3 too. Consider, for example, SVGA, 800x600. For every four pixels wide, it's three pixels high. This is not square, but it's not overly rectangualar either. 3/4=0.75. That's closer to 0.71 which is the ideal aspect ratio of the sweet spot in human vision, but it's still close enough to 1.00 that CRT tubes can be fabricated in this ratio.
Movie theaters use an aspect ratio of 16:9. For ever 16 feet wide, the screen is nine feet high. 9/16=0.56. They'll tell you that they do this in order to more closely match the aspect ratio of human vison which is 0.50. But, if this were truly their goal, then why stop 0.06 shy of the goal? Why not go to a true 1:2 ratio? Keep in mind that while human vison has a 1:2 ratio overall, the center where it's in focus is about 5:7. If the truth be known, the truth is that the reason theaters have migrated to 16:9 is so that they can fit more seats per row.
The new HDTV is uses an aspect ratio of 16:9. But, remember that old-fashioned TV is 4:3 and most computer video is 4:3 too. There are three ways to deal with this:
1) Fit-To-Screen. Just take that 4:3 image and stretch it to fit that 16:9 screen. But people are going to look fat. Circles will become ovals. This is not good... but it's still done.
2) Pan-and-Scan. This means to take a 16:9 ratio piece out of the 4:3 image and display only that piece. The piece is moved around to follow the action. But, sometimes there's action all over the screen. And, all of the time, you'll be loosing some of the picture. Furthermore, Pan-and-Scan is a manual process.
3) Letter Boxing. This is what you are experiencing.
Somewhere in your system there might be an option for "Fit-To-Screen, but it just won't look good.