Wii games set to 16:9 look crummy in comparison to 4:3, which is of course a Wii games 'native' resolution at 640x480. setting it to 16:9 just fuzzes out the image and makes it look softer as you're basically just filling in the sides of your HDTV with a Wii's games REALL full screen picture/resolution....Nothing's being added so the image takes a hit in quality pretty nicely. It's lousy in comparison to setting it to fullscreen. Based on many of my experiences, Wii games look gorgeous via component cables set to 4:3 on an LCD(when set properly)
Yet Plasma's don't looks as bad when set to 16:9, the difference is actually less noticable, but i'm guessing that's because plasma's are better at scaling, but they also boast a noiser less crisp/clean image than an LCD.
in 4:3 the LCD outshines my Plasma for Wii games that's for sure 'LCD motion handeling' aside.
Either way, if you want the best PQ possible for your Wii >
Use Nintendo Official Component Cables.
Select 'Full Screen' in Wii Menu.
Switch HDTV to 'Fullscreen' in Picture options
And whalla! Set the PQ settings to your desire, they obviously play a major roll in this. I own a 42" LK450 1080p LC and Wii games look stunning on my set....But i seriously miss my old crt's perfect motion handeling and ZERO lag....don't get me wrong the LK450 is a fantastic set to game on for non-HD gaming such as the Wii, but games that boast motion controls(be it pointer, tilt ect ect) the lag is a bit more noticable rather than playing something like Wario Land or Mega Man which work good enough for me. 16ms-20ms. For those types of games, it's fantastic, but when motion controls come into play there's a bit of a difference. you NEED every single MS you can get because it's true 1:1 gameplay and there is a difference.