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I agree, letterbox can be annoying on a small TV, but pan&scan sucks too. Yes, it's time to buy a huge projection, or one of those 16:9 formats that they demo the DVD player on at best buy, but don't actually sell. Of course then, regular TV is letterboxed the other way.
In Pan and scan, they don't just chop the ends off, they literally PAN and SCAN within the full frame to focus on wherever the action is. As someone else mentioned the elevator scene in Pulp is a great (horrible) example of this.
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