Anamorphic video deals with how the aspect ratio is put on the DVD. It allows the image to stretch and look good when on a 16:9 widescreen monitor.
There are a lot of shows that are shot 16:9, but are given the 4:3 treatment on the standard station broadcast - they crop the edges instead of letterboxing the image. Old people think something is wrong with their sets when they see the black bars.