It would only fit the whole screen if you were watching a pan and scan vhs or dvd.
At least that is my guess. I don't own a pan and scan copy of menace on vhs or dvd and don't see a point of having one.
Phantom Menace always seemed to have a soft picture but the rental tape when it first came out at blockusbter my bro rented in pan and scan was of dubious quality he brought it back after only twenty minutes into the movie, and the guy at the store told him all the tapes looked like that. Was a little wait as i remember for the deluxe letterbox tape which i remember being expensive and coming with a film cel and an excerpt of the artbook.