Hi jack254718,
It shouldn't be displaying like that. Have you tried rebooting the 360?
Also check your Settings > Audio & Video
Under HDMI Resolution you should have the choices of Automatic, 4K, 1080p, 1080i, 720p and 576p
Make sure the 360 is displaying the correct resolution to match your TV.
Also make sure that the section 4:3 handling isn't set to Zoom mode.
Dave
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