Don't worry. DVD terminology can be difficult to understand. In fact, technically speaking, "anamorphic" DVDs are actually the opposite of what "anamorphic" really means, but it's not a terrible important distinction.
"So this has led me to another question...shouldn't all new transfers of the OT be in anamorphic seeing how the "powers-that-be" are pushing the 16:9 sets?"
The official discs are, but if you are referring to bootlegs - again, it depends, as was explained in the anamorphic thread.
The problem is, regardless of what method you use, you still lose resolution when you "zoom in" on the letterbox transfer in order to make it anamorphic. It simply isn't the same picture, though it can come very close if one is very careful. It really depends on what looks good on your television.
This is why I say people with 4x3 tvs shouldn't get the anamorphic DVD. You lose resolution by blowing up the image to anamorphic, and then you lose resolution again when your DVD player removes 1 of every 4 lines to get the once-anamorphic picture to fit on your smaller TV screen. If you want an anamorphic transfer of the SW LDs, you'd better have a widescreen tv or else you screw up the picture (ironically, though, if you don't have a high-quality tv, you probably won't notice the difference anyways, so those people shouldn't bitch.

"Also, with the emergence of inexpensive DL DVD burners and media that is rapidly falling in price, wouldn't the preferred primary format for the new DL projects (fingers crossed) be 16:9 anamorphic? I'll put it this way, on my 32" 4:3 I can't see much difference between pretty much all of the better transfers, but on the 54" 16:9 the differences are very apparent."
Well, since the anamorphic version takes up more space, a DL version would seem the no-brainer, but if it isn't done well, it can actually look worse. How the video and disc is prepared makes a much bigger difference than you think. Making DVDs ain't like dusting cr.......er, isn't like making music CDs.

Oops, just saw the bottom of your last entry. I'll move this post over there as well.