I started a thread on DVDplusRW.org on this same issue, and there is a post from someone who also compared 1.78:1 material to the interlaced output and noted that even that was shifted upwards. He notes there is enough material available below the screen to continue to fill it, but it looks like we have an upward shift across the board. This seems to be something in need of a fix via firmware, unfortunately Phillips customer service has not been very helpful so far. I talked to one of their reps who said that she would discuss it with the Team Leader and get back to me. Their tech support is actually a 900 number. Looks like it is time for as many people as possible to call their customer service number and ask them about this. The number is 1-800-531-0039.