Well nobody answered so I will do what I can
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1. Can it play Widescreen Movies
Of course, if you don't mind black bands
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2. If 1 is Yes can it play them on a Widescreen TV without squishing anythiing and properly?
I don't know about widescreen movies, but I played a 4/3 manga on a 16/9 TV and it was just fine
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3. Does the TV Out work well on PAL TVs for most users?
It works for NTSC or PAL, but it really depends on how the application handles it! most important softs support TV Out well, like Genesis, SNES or GnGeo or Mame (not sure for this last one), but some others don't do, like many homebrew games (i'm not really sure because I'm usually not using TVout)
But on my LCD TV, I found TVout just bad for gaming, because games are 320x240 on a huge screen :s so imperfections of chatod tubes and old composite cables used to smooth the screen, but a sharp display using modern cables is almost disgusting to see
Don't worry : films are rendered at their native resolution, so no worries, it's only for games
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4. Can you all tell me that this device RULES or too many problems?
this device rules because of it's fans (mostyl on this foruml
), the lot of motivated developers, port of old games and emulators, but it kind of sucks for it's poor battery life (/me wants a DS lol) or poor build quality, some internal design problems (which are for the developers to overcome)
Emulation is mostly OK up to PSX (psx is slow at the moment, but great work is being done by Zodttd)
ok i think i'm done