Screen Formats

You can try the following. If it doesn't work, change it back to the prior setting.

System > Video > Playback > Set "Display 4:3 videos" as 16:9 or as Stretch 16:9.

I'm not in front of my set-up right now, so I'm doing this from memory. You'll see the settings when you get into Playback.

Make sure you have the settings set to Expert or Advanced. Do that by clicking on the lower left of the Playback window. By default, it is set to Basic.
 
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It worked, I'm using the stretch 16:9 I also tried stretch 16:9 - nonlinear but i didn't notice any difference so I put it back to stretch 16:9.
Whats the difference between the two?
 
Glad it worked...

There is a slight difference in how the picture is stretched. In non-linear stretching, the edges are stretched more than the middle. The notion is that the most important elements are in the center of the image frame, so less stretching is applied there, whereas the least important elements are at the edges, so the most stretching is applied there. In linear stretching, the stretching is applied evenly across the image (i.e, same amount of stretching in the center as at the edges).
 
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