Ok folks, I have a 64gb Touch and I rip using Handbrake and Slysoft's "AnyDVD" product. It allows me to rip from the DVD to the iPod format, BUT it is not playing widescreen.

I just took another roadtrip and wanted to watch the Pink Panther movies, but the left and right were cut off. I clicked the widescreen mode option on and off a few times in the setup on the headunit, but no luck.

Anyone else transcoding for the iPods using Handbrake?

I use Handbrake and the movies play in the right format for me. Maybe try another ripping preset in Handbrake.