Ive tried a HOST of things. Even tho you are choosing the correct size, the G1 still wants to stretch it out a little bit more. It may be possible that we are all using the wrong resolution.
EDIT: I found this on HTC's website.
3.2-inch TFT-LCD flat touch-sensitive screen with HVGA (320 X 480 pixel) resolution.
Very interesting! I wonder if that really is the problem right there! I'll try it out once i get home later =)