Netflix – Black Bars on Sides (HDTV)

I have a 37" HDTV and all my video settings have 720p, 1080i, 1080p checked.

I go into the Netflix streaming disc and I select something from my queue and it loads and the quality looks good but there are black bars on the left and right side. The image itself looks squished. . .as if it shouldn’t have the black bars nad it should stretch across the screen. My display settings are checked for 16:9 as well, not 4:3.

Does anyone have suggestions? I really enjoy Netflix and am excited to keep this subscription but I’m annoyed that EVERYTHING is giving me black lines on the sides of the screen. . . 

Please Help!