19' Widescreen Distortion

I am working with a new system 'Lenovo' with a Lenovo 19' Widescreen display. It does OK until I look at pictures. Pictures are distorted by stretching them wider than they are supposed to be. The result is that any person in the picture looks like they have gained 30 lbs. Is this common with widescreens, or am I doing something wrong?

This shows up whether I am viewing a website with pictures, or my own pictures on my machine.

Lenovo tech support couldn't help. They suggested a new driver, but I have the latest driver available for Vista and this Display.

I played with screen resolution and can get the pictures to improve in their aspect ratio, but then the text is very blotchy and hard to read. Not a solution.

Thanks for any help any one can provide.