Soldato
I'd never noticed this. I tried it and tried a 720p vidoe: I have black bars around it. It's being scaled up larger than 720, but not to the full 1080 available.
The previous poster said AMD Steady Video was the culprit in his case. In mine it's greyed out and not selected or selectable. Any idea what's causing these black bars?
I am not familiar with an AMD card or drivers, I prefer to use NVidia for my HTPC. Again check any options within those drivers for any processing, scaling etc being done.
Also read my above post when I note pressing the letter "M" and what can be changed etc.
Remember that not all material will completely fill the screen as it does depend on the aspect ratio they have been made in, and not all of them will be 16:9. But if the black bars are all around the film then you would need to look at what I have noted.