Okay, first of all, I know I have a crappy 37" LCD TV (Westinghouse 37", model: SK-32H240S) which I bought from Dell. I'm not going to return it and buy a new TV.
For those of you who are having issues with widescreen, the wii, and this particular model of TV, I'll tell you that it works pretty damn good with the v-digi vga cable (http://www.vdigi.com/)
This seem to fix issues with displaying full screen wii games and the wii menu. I tried everything from s-video, component cable, in conjunction with adjusting my tv screen (stretch-mode and scaling is really crappy on this TV).
Anyways, just a heads up.
Incidently, if any of you have had success with getting widescreen working on this model or a similar model, or if you have some smart solution that will allow me to use my component inputs on this tv, let me know, I would love to know how it was done!
Hopefully this is helpful