Issues/confusion with LG DVD Recorder and 16:9/Pan&Scan/Letterbox

Couldn't think of a better title, sorry.

Basically I got an LG DVD Recorder recently, an LG DRT389H. It's primary usage is for copying recordings from my V+ HD Virgin Media DVR onto DVD. I went through all the menus setting up everything as I thought was correct including setting the display as 16:9 wherever I saw the choice.

So I start recording and copy the first DVD across and the first odd thing I notice is what DVD Decrypter says about the video stream:
Pan-Scan & Letterboxed? Bit odd I thought but I rip the DVD and check the files with MediaInfo. That says

However when I play the file by default most players display it in 4:3. Same goes for when I put it into videoredo for editing or Adobe Encore for authoring. They both treat the file as if it's 4:3.

Now I know it'll be pretty easy to make sure the final output displays at the correct aspect ratio using DVDPatcher or similar tools but what could be causing these issues in the first place and is it anything to worry about? As I say for any setting on the DVD Recorder that gives an AR choice It's set to 16:9. The Virgin Media box is outputting widescreen as far as I know.

EDIT:
Hmm actually further oddness, if I use DVDPatcher to patch the file to 16:9 mediainfo now says the aspect ratio is 2.35:1 although it plays at 16:9. Seems something is wrong to me.