I understand that when using the inherent 16:9 feature for DV cameras (GL2, XL1, etc.) the vertical resolution is lost when viewed in 4:3. And I also understand that another option for shooting 16:9 is just to compose for imaginary letterboxes and add them in post.
But is there a process to shoot 16:9 that isn't so... approximate? I've read/heard that you can just display letterboxes on your 4:3 monitor while shooting in the field.

Thanks for anyone's reply...

To make a short answer, there are 2 main in-camera ways to achieve 16:9 aspect ratio, depending on camera brands and CCD configurations:

1. Masking 25% of the screen with 2 black bars (Obvious loss of image contents). Can be played on any 4:3 screen with proper aspect ratio and black bars.

2. Adding 25% larger angle of view on the horizontal scale only. Will give a vertically stretched image on a 4:3 screen, but actually uses all available pixels from the CCD. This second method requires resizing for playback but allows only a minor loss of resolution when played on a 16:9 screen. Even some low-end Sony camcorders use this method. It's like a 0.7 wide angle effect on the horizontal scale only. It disables the electronic image stabilizer (SteadyShot or EIS) because it uses all extra pixels in the left and right "margins" of the CCD.