I recently did a slideshow where I was getting very annoyed with the "fuzzy" look of the dissolves that DVDSP was doing. Instead I created the slideshow in Final Cut Pro, then exported a MPEG2 file into DVDSP instead of the slideshow, and the dissolves looked a lot smoother, of course..
I suggest you do the same with a 16:9 project..
Esben Hardt / Ace & Ace
www.acephotos.dk