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I'm not 100% sure what you are seeing when it "doesn't fill the screen".
It's quite possible that you are watching a movie which is wider than 16:9. If this is the case, then there will be black bars above and below. The disc packaging may refer to the movie's aspect ratio (such as, 2.35:1) as well as the disc's aspect ratio (which may be 16:9). Note that these are two different things.
In these cases, the bars are ON THE DISC as part of the signal it contains and should not be removed. However, you should find that menus and the like will fill the screen.
As for distortion - without a better description, I can't be specific, except to say - there shouldn't be any.
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Nigel
Except on matters of forum moderation, the views expressed in this post are my own, and do not necessarily reflect the opinions of AVForums.
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