Nathan,
I think what you're seeing is actually a result of the way Adobe converts HD to SD widescreen - it WILL leave very small black bars left and right since the math doesn't come out exactly. The fix is that when encoding the MPEG-2 DVD file in AME, in Export Settings window under EXPORT tab, look at "Source Scaling". The default is Scale to fit - change this to Scale to Fill instead and this eliminates the black bars. Try it - it shows the immediate result in the Preview, you don't have to render to just see what the settings do.
Thanks
Jeff Pulera
Safe Harbor Computers