"Uh... no. Watch the Lion King. It's 1.66 and anamorphically enhanced, as is the new Dr. Strangelove. They simply box off the left and right sides."

I've never seen a presentation like that before, but yes I'm happy for them to make 1.66:1 anamorphic if they keep the entire picture viewable in the 16x9 area (though this does mean on 4x3 displays you will see black borders on all four sides). The anamorphic DVD's I've seen simply throw out the top and bottom of the picture when viewd at 16x9.