848x480 isn't 16x9 but then again 848x352 isn't either.
I'll try a 1080p really quick and update with what happens for me.
[EDIT]
I think 832x468 is the highest 16x9 resolution that will fit on the droid.
to fit the max height you would have to go with 853.3333333x480
I didn't have any problem setting it to 848x480 though, so I'm not 100% sure whats wrong there. it would be slightly distorted distorted however because the droids resolution is 53:30 or 1.76666
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