The XBR should be detecting this automatically. But what kind of DVD player do you have? I believe that when the Sony receives a progressively scanned signal through its component inputs, you may have to select the 16:9 mode manually. Anyone else care to confirm?
On my FV-series WEGA, the 16:9 mode kicks in automatically.
That's correct : the auto detect feature only works when the set is fed an interlaced signal. You just have to have the menu setting to "automatic" and it will work. Manual selection is required when a progressive signal is input.