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Before win7 they used 4:3, so I guess it's some improvement
4:3 is correct for 4:3 modes. Here they're spitting out anamorphic 16:9 video on a 4:3 mode, which is a huge WTF.
well before it was 4:3 stretched to 16:9, which is arguably was worse for most users
The users with their 16:9 screens configured in stretch mode don't care. Those with them in aspect stretch mode *do* care. And now the latter will get an ugly display.
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