I watch movies via my 360 in 1:1 mode all the time and I have bars at the top and bottom but the backlight is def bleeding through up there. Did I read this right that I can make the lights actually turn off where the black bars are?
I don't have a 360 to know how it connects but when I hook up my PS3 over HDMI-to-DVI on 1080p and select 1:1 mapping then the top and bottom LEDs turn off and black is real black.
One note though, I checked again and on my PC I cannot make the 1920x1080p mode show up properly over VGA (it is detected as 1280x1024). To make things worse over DVI the mode 1920x1080p doesn't exist at all. Maybe my GC is kinda goofy.
The bottom line is that if you send any smaller size image than the native 1920x1200 and you select 1:1, then the screen should create black bars or a black frame which is pitch black. It's really cool but not as flexible as I thought.