2.35:1 & AE3000u Question

[jarth3000]

Ok, so I've begun preliminary designs for my future home theatre/basement of my new home that's being built. I decided to leave the basement unfinished so that I could complete everything to my liking and at a fraction of the cost. Right now I'm trying to decide on a projector and screen size. I like the idea of a 2.35:1 screen, but don't really feel as though I want to spend the extra cash on an anamorphic lense at this time. Frankly, I'd love to have that setup, but marriage isn't a dictatorship in this instance.

I was reviewing the Panasonic AE3000u and love what I'm seeing at that price point. I was also reading that it'll throw a 2.35:1 image but place the black bars above and below the screen. Here are my questions:

1. In doing the above, will I obtain the full widescreen image that is desired?
2. If 1 is true, would black velvet be the best option to surround the screen for the black bars that are above and below the image?