i don't see what the problem is. i use a widescreen lcd (1280x768) and ratio for all the stuff are correct as long as you have keep aspect ratio on original. also 4:3 stuff in 0.8.x automatically stretches to full width and cuts off top and bottom (i like that), i use ffdshow filters to add borders to both sides if i need to see top and bottom stuff.
in rc1, it's different. it stretches to height of monitor by default, not width. i don't like that. however you can do use pan now to stretch the screen horizontally. but this feature is not free of bugs and if you switch between fullscreen and window mode, the screen will get smaller and smaller until you can't see it anymore.
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