Display Resolution, AR and pillarbox issue

[AtomicPenguin]

My TV is an LCD HDTV - 16 x 10 format. I'm using the HD-200 extender. Content currently is SD only.

For supported video modes on the HD-200 video setup I selected 480i & 720p. I'm using component out. Native Output Resolution switching is enabled both in the standalone mode and within SageTV. I'm using the 'Full' mode on my TV to stretch the displayed image on the screen. The AR being used is 'Source'. Recorded shows, imported videos and DVD rips all play great. When I play a recorded show the display resolution changes to 480i and the 'Full' mode on my TV makes it take up the entire screen. Widescreen DVDs and imported videos display properly as well.

Finally the problem. When I select 'Live TV' the screen resolution changes to 480i but about 95% of the time my 4:3 video has pillar boxes on both sides. Whereas if I go and play back a recorded show from the same source (only one source) it displays full screen with no pillar boxes. Tonight I had a recording going and going to 'Live TV' gave pillar boxes on the video but when I went into the recordings list while SageTV was still recording the show and played it from there it played as I wanted it to (full screen - no pillar boxes).

So I guess the question is why am I getting pillar boxes only when going into 'Live TV' vs selecting a recorded show or a recording in progress (and on occasion 'Live TV' will display without pillar boxes - not often at all though)?