I would think this is DirecTV's problem or they will lose a 1080p customer. Try playing a BD? Look ok?
My TV is a Panasonic TH-42 PZ700U that approximately 2 years old. We just signed up for Direct TV about a week ago and it seems to be a fine service. They also broadcast in 1080p if you are connected to the internet and have a HD DVR box installed. However their 1080p service is broadcast in 1080p/24 frames per second. The Panasonic resolution is 60 frames per second, making the picture fill only 2/3 on the screen; it is missing about 8 inches on the right and 8 inches on the bottom. I talked to Panasonic today and they said to unplug the HDMI cables from both the TV and the box, kind of making the TV reboot; this would enable us to switch on the 3:2 pull-down feature which would enable us to see the full screen. After doing this and plugging back in the cables, the on/off toggle switch was grayed out to off. It seems that the Direct TV box is somehow blocking the on switch of the 3:2 feature to view HD TV in 1080p. Direct TV says that there is no button to press on their DVR box that would fix the issue. Do you know of some way to fix this?