What I found was my TV didn't switch and I had very tall, thin looking people, and I didn't have a manual control to compress it on the TV.

Interesting. That's exactly what Tod's PS2 did not do. The people never, on any screen, got "tall and thin". When we'd put the projector into anamorphic widescreen mode (called "Full" on the projector's menus), everyone got wide and fat, which was of course the tip-off that the PS2 wasn't showing widescreen.

So I wonder what the problem is?

Maybe I'll ask the folks at hometheaterspot.