What is the part number of the video module you installed? Some of the earlier video modules only support a 4:3 display. The later video modules have a selection to set whether you have a 4:3 or 16:9 display.

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2000 E38 750iL Highline Edition, Upgraded with the lastest 2006 X5 Electronics
MKIV Navigation, 16:9 Display, Bluetooth, TV/Video with Backup Camera, Sirius, and Aux Input