All the Karate Kid movies are OOP on region 1 DVD, and yes, the original KK flick was only available in fullscreen over here. I too have been hoping for a SE box set of all the movies...or at least just a SE of the original. If you're lucky, you can still find the first flick on VHS (ha!) for around $5.00. I got mine at FYE...
Ive got part 2 but have been waiting for a SE WIDESCREEN of Karate Kid...for awhile If Columbia can release numerous reissues of DVD's that dont NEED a special edition (New guy, The animal, Booty call,...etc) I would think this one would qualify as a priority....A commentary with Ralph Macchio and Pat Morita would be awesome