I definitely would want to go with an anamorphic lens. Zooming the image to get rid of the bars is out of the question.
I new there would be some overscan over DVI but I didn't know that the Z2 would have so many pixels...
I wonder if that overscan happens no matter what DVD player you use.
Building an HTPC would definitely be the way to go since there is total control over overscan, image stretch etc...