Tarun, my guess is that your watching movies that are wider aspect ratios. Just because you have a 16:9 tv/projector, it will not get rid of black bars on wider material. 16:9 is the format for HD material (aspect ratio of 1.78) Many DVD movies are in 1.85 which will be ok on the 16:9 screen since it is very close, however, movies like Star Wars and many others, are in 2.35 aspect ratio, or those you will still get black bars.
I'm not sure about the flickering, my guess is that the vibration from the EP600 is affecting the image, makes sense. Or you have a lose cable that is rattling with the 600. What cable are you using to the projector?
