Anamorphic refers to widescreen (16:9) video that has been horizontally squeezed to fit the NTSC standard 4:3 ratio. The video stream is flagged during the MPEG encoding process to trigger the correct playback ratio from your DVD. On a SD TV the video will be letterboxed (horizontal black bars at the top and bottom) and on an HD TV the video will display in the correct widescreen format.