when a movie is encoded to suit d exact resolution for each particular device e.g iphone at 320x480, it is played in full screen already and you call it full screen mode with wide screen feature movie/clip... When you double tap screen to make those black area disable, yes, as you said, it zooms and made the side part missing...

However, what are u suppose to lookfor is an encoder that can STRETCH a clip/movie and made Jack Black looks tall and penelope cruz become super stick.

I cant imagine how you enjoy ur movie.... however, to know if any encoder/converter exist out there is a good thing...

P/S: Anyone have a problem with wide screen clip/movie?