When playing DVD,picture is streched with bars top/bottom, with 16:9 ratio for DLP HD TV. DVD signal is on component input to TV. Have to set HD TV to 4:3 mode for DVD picture to look normal, then is with bars all around. What a waste. Is this normal. Does upconverted DVD change ratio to 16:9.
Sigh. Okay. Listen closely. Look at the back of your DVDs. Nearly all of them should list the actual aspect ratio of the film. For example I just grabbed a disc at random, The Silence of the Lambs (Criterion Collection). Stated aspect ratio for the original theatrical version is 1.85:1.
Obviously this is a bit different than my HDTVs screen aspect ratio of 16:9 so I will have black bars top and bottom. But it will look normal.
Now if it was an anamorphic disc it would fill the entire screen if my DVD player is set for a 16:9 screen.
You are missing a setting somewhere in your DVD player (yes you have to set the screen size on the player as well) or your TV if the image is stretched. Set both for 16:9.
If it is not stretched and you are expecting to not have black bars then you are SOL. Your widescreen TV is a compromise aspect ratio, movie aspect ratio is set by the cinematographer and the director and it can change a lot. Get used to black bars. If your screen is large enough you'll never need to worry about black bars making your image too small.