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Hello. It's not a picture setting, it's a format, or picture size setting. Look for a button on the remote labeled Format, or Size, or Zoom, or something similar. You want to select 16:9, or Full, or whatever fills the screen without zooming.
There is a key on the TV remote control for adjusting the size of the picture. On pressing this key you will get the options of the picture size like 4:3, 16:9, Zoom, Wide etc. You can choose the size you like.
I have had what is fundamentally the same problem. I have a desktop PC that I am plugging in to my Panasonic Viera TX-32LZD80. I am using DVI connection plugged in to HDMI port.
The solution is fairly simple; use the Menu button on the TV remote to get to the Main Menu for the TV and then select Setup which should be the fourth of four options. This will get you to the Setup Menu for the TV for the current channel. Look for the Picture Overscan option, it will very probably be set to On if you have the problem of %5 or so of display being missing on all sides.
Switch Picture Overscan to Off.
This immediately should solve your problem. A note of warning on this is that I suspected this was the problem but when I first looked at the Setup Menu I could not find the Picture Overscan option.
If you are unable to find the Picture Overscan option then trying fiddling with the Aspect settings. You will probably find it set to Auto. Switch it to 16:9 and you should find the Picture Overscan option will be available from the Setup Menu.
You should have a screen resulation menu and a vertical size (high) control also on the r/c[remote control] menu.
If not you could have a vertivcal (electrical) problem. Let a technician take a peek at it.
To adjust screen size, choose the View Mode feature on the top right of the remote control. Zoom size is full screen for watching DVD movies, but sometimes there is still a thin black band due to the formatting of the dvd (unless you buy full screen versions) S. Stretch view mode is best for TV Movies.(usually fills whole screen) Occasionally there are TV movies which just don't respond to being stretched to fill the screen, it's just the way the signal is coming through . 1080i/p detects the resolution of the signal and displays the same number of pixels on the screen, but a 720p signal input will be viewed in full screen.