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YouTube's Google Video-ization continues by using more space for the player and less space for the sidebar. YouTube changed the aspect ratio from 4:3 to 16:9, generally used for high-definition TV. Since the videos aren't yet converted to a widescreen format, you'll see an annoying pillar box effect.

The pillar box effect occurs in widescreen video displays when black bars (mattes or masking) are placed on the sides of the image. It becomes necessary when film or video that was not originally designed for widescreen is shown on a widescreen display, or a narrower widescreen image is displayed within a wider aspect ratio.

Take a look at the specs in the description of http://www.youtube.com/watch?v=_FDey3idTco which is intentionally rendered to an appropriate resolution for 16:9, but with a non-square pixel aspect ratio (PAR) that makes the video come out with a Display aspect ratio listed as 1.481 which YouTube naturally ignores, instead forcing a square pixel and the resulting squish on
the horizontal axis.

One fast guess would be to take a look at the PAR for your project/
source video and the PAR of the version you are rendering/uploading.
But there are so many formats you could be rendering in, I don't want
to confuse you further.

I've tried exporting video at 640x360 and 720x468, both of which should fill the player, but both of which get crunched back to 4:3 by YT's player. Now, interestingly enough, dropping a video onto my mac and exporting the video out of it (one from a cameraphone, no less) at HD 1920x1260 (which is just insane when it comes to aspect ratio for the web), fills the player just fine. You can see it at http://www.youtube.com/watch?v=4TTZAedZuDg

ANyways, check out http://www.facerocker.com/2008/12/31/how-to-make-hd-720p-widescreen-youtube-videos/
for a very useful guide on the same. Hope this helps!

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