A little help :( to get me to 1080p

[Trean]

A little premise... everything works it just doesn't seem to be working correctly.

Setup:
Receiver: Onkyo TX-SR605
Player: Panasonic DMP-BD35
Monitor: Viewsonic 2435WM

Cable Config:
Blu-ray Connections: HDMI to Receiver & Ethernet to Router
Receiver Connections: HDMI to Switch
Switch Connections: HDMI to Monitor (Switch is present because the Onkyo receiver does not like the 1920x1200 PC resolution.)

Blu-Ray Player Settings:
Video Output: 1080p
Audio Output: Bitstream
TV/Monitor Aspect Ratio: 16:9

Monitor Settings:
Aspect Ratio: 1 to 1 (can be set to 16:9, 4:3, and Full Screen)

Problem Description:
When anything is playing on the blu-ray player (even when at the blu-ray setup screens) black bars exist on both the top/bottom of the screen and the sides of the screen. It seems like the output signal is not 1080p or something is not interpreting it and resending it/displaying it as 1080p.

I understand OAR (I think) and according to my knowledge the only black bars that should be present are the ones on the bottom and top of the picture as the picture should be 1920x1080 and thus even in the setup screens I will have 120 black lines distributed some how between the above and below the picture.


Questions:
Does anyone know how to fix this so that the picture goes out to the sides of the screen (or please inform me that the picture is not suppose to)?

What I plan on trying while I wait for a response:
Eliminate the receiver and switch to narrow down where the problem occurs.


The good news:
I get the HD Audio codecs to my receiver and DTS-HD & Dolby True HD both sound really good on my paltry HTiB leftover speakers.


Thanks for all the help in advance.