Ok, I took some pictures tonight. I apologize about the quality of the pictures and the number of them.
Here is a shot from the back of theater to show you the position of the projector being above the screen.

Another shot from the side

Here the picture is a 16x9 zoomed to height and set to fill the screen.

The electronic shifts are zero'd and the Lens Controll V-Area Position is set to 0.

As well as the Position screen and V-position setting is at 0

Now I zoom the picture out to fill the width of the screen. This is what I was talking about the picture being moved down about a foot from the top after zooming. The lens control V-Area position still at 0.

and the position V-position still at 0

Right now the picture will not move up any higher than this, if I use the Lens Control V-Area position and crank it all the way up (63) the top of the picture it self moves up, but the whole picture never moves. Hard to explain this, but it almost looks like once it get to a certain point when adjusting the picture just gets cut off. Notice the PS3 icons between the last picture and this one.

And just for another visual here is a picture of a movie in 2.35 (cars) in this position

Now in order to get the picture to fill the height of the screen I have to move the mechanical shifts to move the picture up leaving the electronic shifts at 0. See how both the height and the width now fill the whole screen.

Here is a screen shot of the test pattern type screen.

And another one.

Well I hope the pictures help explains my issue. I am sure it is just a setting or the way I have it setup, but I been messing with the settings for a long time now and I haven't been able to get past manually adjusting the mechanic shifts. I know from what others have said you are able to switch between 16x9 and 2.35 with just a click of the button.
Any help would be greatly appreciated.