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99% of recent mainstream films will be in a 1.85:1 or 2.35:1 ratio widescreen format. 1.85:1 will have very small or no black bars on a 16:9 set, 2.35:1 will have small black bars top and bottom. Both are the proper way to view the film (think of the bars as blank space, not missing picture)...

Just to add to the excellent advice so far - "Grainy" is not necessarily a bad thing. There is a difference between grain that was in the original film and digital artifacts. Many films (Godfather I+II for instance) were filmed in low light and/or on grainy stock and are meant to be very grainy...