I had never used the letterbox mode until yesterday...and what I found is the footage (shoot in 24P Normal with Med line resolution) exhibits a lot of vibrating artifacts, especially along the line that the camera inserts for the black letterbox. The letterbox itself (the black bars) really, really vibrate and "flicker" along their edge, especially if the picture is showing something bright (like a sky) against the edge of the black letterboxing. Makes me think I should only ever use letterbox as a post effect (my Avid allows me to add the black bars as an effect).