The game wasn't developed for 16:9, so it will never look correct on a 16:9 display.
You can enable the "aspect ratio" patch in the settings, but it doesn't make the game display as 16:9, what it does is "fit normally outer-edged pixels on screen by removing some other pixels in the same amount of screen size", so when you display the 4:3 picture on a 16:9 TV you have the illusion that it's a 16:9 picture. But it doesn't take the full TV area, that's why you still have black bars on the sides.
The green bar under the video is not normal.
Try to disable "Progressive patch" setting in the loader, and use the in-game setting to put the game in 60Hz/480p.