A couple of widescreen questions

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I just got my first widescreen TV and I've got a few questions about how my TiVo works with it.

I've got a series 2 5400 series TiVo (the "nightlight" one). I've changed the setting for 16:9 capable TV.

My only recording source is a satellite dish, so it's composite in, therefore everything coming into the tivo is in 4:3 aspect ratio. But when it records and plays it back it's stretched for 16:9.

How does TiVo work for widescreen? I would think that it should play back stuff recorded in 4:3 with bars on the sides.

 

I've got it in stretch mode because if I don't, even with it set to 16:9 it shows in a 4:3 box in the middle with bars on the sides.

If it makes any difference, I'm running S-Video out to the TV because that's the best output option on this model of TiVo. No component video outs on this one.

 

My confusion comes in the fact that when I change it from 4:3 to 16:9 in the tivo, nothing changes on my television. I assumed that when I changed it to 16:9 that the tivo menu would then fill the screen. In normal non-zoom mode, the stuff I record from the satellite shows up correctly, with bars on the sides. However when I transfer something from my computer that's in 16:9 format (not letterbox) it shows up in a 4:3 window just like everything else. I therefore thought that I didn't have something set up properly.

I re-read my 2nd post and yeah, very confusing, sorry. I want everything to show up in it's normal aspect ratio. I want the stuff that records from the satellite in 4:3 (with bars on the sides) and I want the 16:9 content that I transfer from my computer to completely fill the screen.

I was hoping there was something I was missing in setting this up so I didn't have to keep switching zoom modes to view what I was recording, but I guess not.