The black bars are on there because they are on Blu-ray discs, I have never ripped a Blu-ray movie that didn't have them unless it was 1.77:1, so it is no different than making anamorphic DVD's, they have to be there, this isn't for a MKV encode, this is for Blu-ray blank Disc, if\when I do a MKV file there will be no borders.
Now the other thing you said about an earlier version looking better, LOL, I just fracked myself again, I have done SO many things now, I do not know which is which, except for this latest I just now uploaded, this is why I need help LOL, I NEED comments and tips and ideas.