So ive done some testing with clean dumps...one on my 4:3 win 7 64 bit arcade machine and on my 16:9 win 7 64 bit laptop.both with the 720 res files and free play added.
The 16:9 laptop runs fullscreen perfect, the 4:3 arcade has the grey thing at the bottom off the screen.
So basically the game is either set to run 16:9 somewhere in the settings or its impossible to show properly on a 4:3 monitor