That's correct. 1.85 movies will fit your screen. 2.35 will have black bars. The case (or imdb) usually states the ratio. I'd guess 2/3s of movies are 2.35.
If you weren't getting black bars on dvds, you were doing something wrong, and were watching some kind of cropped or stretched version. The dvd player should be set for 16x9 or widescreen. And the TV should be set for the setting designed to receive that input, usually just the normal setting. Full on some, widescreen on others.
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