“Do you know if old letterbox DVDs be displayed full width BUT WITHOUT DEFORMING THE IMAGE (by only expanding width that makes it "fatter") or by expanding the also vertical image beyond the screen height (which cuts off part of vertical image)?”
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Hi. I appreciate you taking some time to share your inquiry. This TV can display most formats. However, the configuration depends on the type of connection and on the format that the external source (DVD) provides. Either way, you can adjust the picture size with the remote. Alexander G. - Insignia Support
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