Even though my X is running at 720×480 on a widescreen tv I had to adjust the GUI settings as so, big ups to chase
GuiWidth: 641
GuiHeight: 451
GuiOffsetX: 36
GuiOffsetY: 12
Now that I had them set everthing worked fine…. except video playback, I just had to adjust playback to play as 16/9 and now everything is perfect. Just need to get Lirc working now.