Bars (Game running in a widescreen mode ?)

I'm not really too fussed about it but I noticed the game has bars above and below the screen, as far as I know when you have bars in game it's because the game is playing under a widescreen aspect ratio which shouldn't do (I'm using a 17" LCD monitor....I know, 1280x1024 isn't the best reso compared to what the world has introduced but games still look amazing with it). I tested SMB on my spare PC (Which is connected to a widescreen TV) and it was in full screen perfectly so it just makes me wonder if the game is running in a widescreen aspect ratio.

It's also very anoying using devmode as I have to move my cursor well away from buttons in menu's to click anything because of this.

Is there anyway of sorted this out? Thanks :)