HD or hi def and aspect ratio are two totally differently things. HD is all about more pixels (more resolution) in the image. Most all DVDs currently out are widescreen with lower resolution than HD (typically 720 x 480 vs. 1920 x 1080 for HD).
Have no clue what you mean by a "flattened DVD image." Both the DVD player and the TV should be set for 16:9, or widescreen, whatever terminology the equipment may use. ANY use of zoom or stretch controls is going to distort the image and you shouldn't do that (well, some folks seem to like that stuff, I don't get it!).
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