Xbox help

Recently got an xbox and it came with a converter that the guy called a HD conveter. I suspect it is just a component converter. My problem is when using that converter, it displays in 4:3 only, not 16:9
Is anyone familiar with this? First: is there another unit out there that is better?
I guess second would be the obvious, would the DVDO be a good choice?
Thanks for any help.
Scott