Could be. I get my signal from Cable (not ATSC), all my TV's are now HD-capable, and I generally only watch HD channels. However, my wife will sometimes watch one of the older SD channels and I've noticed that some of them do as you describe. For example, ABC seems to chop the sides off the HD 16x9 broadcast to get a 4:3 aspect ratio and scales down to 480i for their SD broadcast. Then when you view on an HDTV, you end up with black bars on the sides (or a stretched out picture) and it looks especially bad after being de-interlaced and scaled back up to 1080p.
In my case, I know it's the broadcast (or the cable company) that's doing it and not Sage. I can verify this (and have) by connecting a cable box directly to a TV and watching live, so Sage isn't involved all.
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