Ah yes, the black bars. I found some bugs in the settings menu so I changed things up a bit (also created a splash screen for when you initially boot the game, so you can fix your display settings before the cutscene begins). However, I can't reproduce the 16:10 issue because I don't have a monitor to test it on.
Can you give 1.3 a try to see if it's still happening? If so, I'll have to dig around some more to find a way to test it.