Here's my issue. The HVX-200 in 720p mode will only do a 4:3 letterboxed picture with black bars. I want to have a full 16:9 image that will display natively on a 16:9 screen. I'm having one hell of a time finding the option in the menu that would set the camera up this way. I figured it would be totally obvious, but this does not appear to be the case.

Can anyone point me in the right direction?

In HD the output is true 16:9, which will necessarily look stretched on a standard 4:3 monitor unless the monitor itself can correct the image, with letterboxing. Output to a true 16:9 monitor, a 720P signal will look correct (unless the monitor itself has a sidebars or letterbox function that can be turned on and off).

Yes, that's definitely how it should be. But I'm having a little difficulty setting up the camera.

Can you tell me what settings I need to have in order to have true 16:9 widescreen? I don't have the camera in front of me, or else I'd describe the settings I have currently.

In 720p mode, or 1080 mode, or "squeeze" mode, the HVX is always full 16:9.

The only time you get 4:3 is if you shoot standard-def 480 mode and choose "norm" or "letterbox". Anything else ("squeeze", 720, or 1080) will always be full 16:9.