Just purchased the Sony Google TV Blu-ray player yesterday. Updated to 3.1 and up and running. I have a library full of movies in the MKV container. The majority are all DVD rips (MPEG2 video and AC3 or DTS audio) with no transcoding. Good news is that the device plays everything. Bad news is, all the movies are not properly displayed. I have black bars around all the movies. When I'm in the Sony media player connected to my DLNA server, I have the ability to expand the picture so it fills the entire screen (50" 1080P Plasma). However, that still cuts off part of the picture. I don't like the idea of having to do this, but at least it helps. I do have some 1080P MKVs (H264, AC3 & DTS), and they do in fact display correctly. I'm assuming this is do to them being the same resolution as the TV. I've used a Popcorn Hour media player for the last four years with no problems. Everything displayed correctly. It seems as though the Sony is not properly reading the 480P MPEG2 stream to fit a 1080P screen. I've tried changing multiple picture/display settings on the Sony, my TV, and AVR with no success. This has to be happening to someone else. Help!!!