In this thread on the 2K Games forum, reports are coming in that BioShock uses a cropping method for its widescreen display, cutting down on the vertical view rather than expanding the horizontal width. The problem apparently exists for both the PC and Xbox 360 versions, and cannot be fixed with an edit of the game's FOV (field of view) setting. There was extra frustration from fans as Chris Kline, Lead Programmer on BioShock, had previously said in the forums, "You will see more in widescreen. We use a different projection matrix; there is no squashing or stretching of the image involved."

There is no good news from 2K or the studio formerly known as Irrational on the forum, and our attempt to contact 2K about this directly has met with no response so far.

Update: This post on the 2K Forums offers a homebrew workaround for widescreen issues in BioShock  There are fixes for the demo as well as the full game, but obviously nothing for the Xbox 360, which is going to require an official fix. As for the unofficial fix, this is obviously a use-at-your-own-risk type of deal, but the responses in the forum indicate that this has been working for people, though it seems it has been tricky for some Vista users (but it sounds like it works for them as well after a little work). Meanwhile, Ken Levine made a post to the 2K forums last night commenting on this widescreen issue.