The 16:9 displays with a very small amoount of letterboxing on the 16:10 monitor. This is how it is set up on the L2335. 720p has a 16:9 aspect ratio.
SD appears a pillarbox, there is always the interlace to progressive issue to deal with as far as quality is concerned since you get a lot of field blending as well as the very small anount of lag because of pixel refresh.
As long as the LCD is connected your CPU, it can have drivers to calibrate. If not, you are on your own with just the on board controls.
Michael