I finally got a chance to test this out in my new space. I went a little overboard, the first three 2:39:1 shots are 58" high x 138" wide. Yes that is light fixture in the photo, I was trying to go for maximum size to offset changing over to 16:9. The light may have to go.
This is just a tan painted wall, but the results are amazing. I see why everyone gets so excited in the 2:35:1 forums, the huge size of the screen along with the missing black bars provides a great cinema sensation. The black bars are zoomed off the wall, the top bar is being projected onto the ceiling and the lower bar is on a dark green horizontal partition I have on the wall. Once I decide on an exact size, I'll replace the white ceiling tiles with black to reduce reflection.
All I had to do was change the aspect from 'auto' to 16:9 for the 16:9 content. The 16:9 screen is 58" x 105" wide. The projector is 17 FT from the wall with this setup. Claus, I will likely use HP material again, but it's surprisingly watchable at this size on a painted wall. I have a light controlled environment this time around.
I didn't see a real need for the shutter function, I don't think it masks the pillar bars on 16:9 any more than they already are as a result of the format change. I would still create a masking system as AVSNUB did to darken those pilars during 16:9 viewing.
The REON HQV processor is doing a fantastic job scaling the image, I have to agree with the others, I cannot see any kind of image loss with this setup, the 16:9 video is as crisp and sharp as it is in standard 16:9 mode. The option to go between scope and 16:9 with the push of a single button is a great feature of the Mitsubishi 5500/6500/6800 projectors. I only wish I knew about this 15 months ago when I bought it.
The camera is in the same location for all the shots so everyone can get a perspective of the size difference.
The only bad thing is, it's going to be hard to watch 16:9 video once you see how immersive scope is.