If everything is set to 16:9, including the TV, Sky Box and Microwave
then something must be faulty, and you should really get it seen to as you should be enjoying your widescreen TV as it is supposed to look. Have you got anything else connected to the TV, other than the Sky Box, and is the Sky Box connected through the video.........
.......oh, hang on a minute.........
...I watch any tv programs at my breakfast bar on my 28" Toshiba SQUARE screen 8)
.... are you watching 'normal' TV (BBC1, BBC2, ITV etc) through the Sky Box, or through the TV aerial? If you're watching through the TV aerial, then you're not getting true widescreen. Do people still look short and squat when you watch a Sky channel?